Latest news with #VanguardFTSEAll-World
Yahoo
29-05-2025
- Business
- Yahoo
Tired of tariffs? 5 investments to step off the Trump tariff merry-go-round
Investors have seen a lot of volatility so far in 2025, as they try to grapple with the impact of new tariffs from the Trump administration on the economy. The S&P 500 rose to start the year, but fell sharply, ultimately entering a bear market, following the announcement of the new tariffs on so-called 'Liberation Day.' Since then, the market has recovered much of its losses, with certain tariffs being reduced from their initial levels or delayed. Some investors may be tired of the whiplash and the good news is that there are a few places to hide. Here are five investments that are less sensitive to tariffs. Gold has long been a favorite holding of investors during times of uncertainty, so it's no surprise to see it has performed well recently. Gold is up more than 25 percent so far this year, and has risen about 6 percent since the tariffs were announced. Fans of gold should beware that while gold has performed well recently, it also has a history with long stretches of underperformance. If you do hold gold in your portfolio, it's typically best to keep it at a relatively small percentage. Real estate is another area that may provide shelter from the tariff storm. Real estate tends to be impacted more by local issues, rather than things like tariffs, though it can increase prices for certain materials and lead to higher construction costs. If you own a home, its value likely hasn't been impacted too much by the ongoing trade war. A recession would certainly have an impact, but real estate investments should be less directly impacted than other areas. Here are some of the best real estate investment trusts (REITs) to consider for your portfolio. International stocks are another area that may not be as impacted by tariffs as U.S. stocks. Companies that primarily do business outside the U.S. don't face the same business disruption as U.S. companies that are dealing with new tariffs and the potential for retaliatory tariffs. International stocks have already seen strong performance in 2025. The Vanguard FTSE All-World ex-US ETF (VEU) is up about 14 percent this year as of mid-May, compared to a roughly 1 percent increase for the S&P 500. Check out Bankrate's list of some of the best international ETFs. Bonds may provide some protection during times of uncertainty, but they aren't immune from the impact of tariffs. Investors often flood to government bonds during periods of high volatility, which pushes yields lower and prices higher. If tariffs push the economy into a recession, bonds could benefit as the Federal Reserve cuts interest rates to support the economy. But tariffs have the added possibility that they could lead to higher inflation, which is bad for bond investors. An inflation spike may prevent the Fed from lowering interest rates and could leave bond investors in a tough spot. Not every U.S. company or industry is impacted by tariffs in the same way. Automakers face a greater impact than certain tech platforms, for example. By researching individual companies and how tariffs could impact them, you may be able to find stocks that offer tariff protection and the potential for growth. Tech companies such as Uber Technologies (UBER) and Netflix (NFLX) are up more than 45 and 30 percent, respectively, in 2025 thanks to their strong results and relative insulation from tariffs. Traditional defensive sectors such as consumer staples, health care and utilities may also be places to ride out the tariff storm. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
Forbes
04-05-2025
- Business
- Forbes
Bet Against America? This Growing 9.5% Dividend Says ‘No Way'
Flag hanging on a facade getty Are US stocks set to lose out to the rest of the world forever? That's what the press would have us believe. But we contrarian dividend investors are looking at this from a different angle. Our strategy? Buy America when the rest of the world is selling. It's worked before, and we have every reason to believe it will work now, too. So let's talk about it—and the best way to position ourselves for US stocks' next leg up, with a healthy dividend payout on the side. It's funny, but not surprising, that the moment 'sell America' became a headline earlier this year, US stocks started to recover. That said, they are still behind the rest of the world, as we can see by the performance of a popular S&P 500 index fund (in purple below) compared to the Vanguard FTSE All-World ex-US ETF (VEU), in orange. SPY Bounces Back Ycharts Note that both US and global stocks fell about the same amount when the Trump administration announced big global tariffs on April 2. But global stocks recovered more quickly in the following days. And then, last week, US stocks started to catch up. History tells us that they're likely to do much more than catch up in the long run. SPY Long Term Winner Ycharts Going back to VEU's IPO in 2007, the S&P 500 has returned 9.9% per year on average, as of this writing, while VEU returned just 3.9% annualized. This shows why buying US stocks when they lag is a winning move in the long run. We can see that more clearly when we go back to the last time the world soured on US stocks in favor of foreign alternatives, which was a bit over a year ago in February 2024. Back then, Reuters wrote, 'Investors dumped US shares, bought China in week to Wednesday.' At the time, Chinese stocks—shown in blue below by the performance of the iShares MSCI China ETF (MCHI)—were more than doubling their US cousins (in purple), which were themselves lagging global stocks (in orange) by a bit. SPY February 2024 Ycharts As we can see below by looking at Chinese stocks, that country's markets did hold their value for the rest of 2024, but US stocks surpassed those of the rest of the world and started to close the gap with Chinese stocks by the end of the year. SPY Bounces Ycharts And in the longer run, Chinese stocks trail. If we go back to MCHI's IPO in 2011, we see that it has badly lagged US and global stocks, being almost flat: SPY Wealth Creation Ycharts So, time and time again we see the same pattern: For us long-term investors, then, it makes sense to take advantage of the recent lag in US stocks to buy—and position ourselves for a bigger return over the long haul. One of the best ways to do so is through a closed-end fund (CEF) called the Liberty All Star Equity Fund (USA), which yields a rich 9.5% as I write this. USA holds well-known US large caps in a diversified portfolio, with Microsoft (MSFT), (AMZN), Visa (V), Capital One (COP) and many others as top positions. The fund also focuses on firms with strong cash flow, 'moats' in their business models that help them fend off competitors, and histories of strong returns. It also 'translates' those profits into that huge income stream for investors who buy now. Moreover, USA (in blue below) has outrun global and Chinese stocks in the last decade. USA Total Returns Ycharts USA's big dividend didn't just hold steady over this period, it grew, as the fund pays out a percentage of its net asset value (NAV, or the value of its underlying portfolio) as dividends. USA Distribution Ycharts By investing in USA, we're getting a huge and reliable income stream that stands the test of time. And now that the market has sold off, there's an opportunity to buy before we go back to the norm of American outperformance. Which brings me to the fund's discount to NAV: As I write this, USA trades around par. That makes it a good trade now. But if you want to maximize the gains you collect in addition to that huge 9.5% dividend, it could pay to wait for the next dip—and the chance to buy at a discount. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 8.6% Dividends.' Disclosure: none
Yahoo
30-03-2025
- Business
- Yahoo
This Vanguard Fund Invests in Non-U.S. Stocks and Is Up 8% This Year
If you're worried about the U.S. economy or simply want a way to diversify your portfolio, you may want to look at investing in companies based in other parts of the world. It can be a good way to balance out some of your risk, both in the short term and the long term. And one exchange-traded fund (ETF) that has been doing well this year is the Vanguard FTSE All-World ex-US Index Fund ETF (NYSEMKT: VEU). Here's why this can be a good investment to put into your portfolio right now. Vanguard funds are attractive options for investors because they often come with incredibly low fees, making them ideal options for the long term. Minimizing fees is important to ensure that your returns are high, and the Vanguard FTSE All-World ex-US ETF charges an expense ratio of just 0.04%. Another appealing feature of the ETF is that it contains thousands of stocks -- more than 3,800 holdings in total, with a median market cap of $48 billion. Investors get a good mix of stocks within the fund without being overly exposed to any single company. The largest holding in the fund is Taiwan Semiconductor Manufacturing, which accounts for less than 3% of the ETF's total holdings. And most stocks make up less than 1% of the fund's weight. The downside of too much diversification is that it can result in underwhelming returns, especially when it's only certain sectors of the market that are performing well. But you'll primarily be interested in the fund for its low cost and diversification, as it can provide you with some excellent long-term stability. More than 41% of its holdings are European stocks, 26% in emerging markets, and another 25% are in the Pacific region. Another thing investors will like about this ETF is that it averages a modest price-to-earnings multiple of less than 16. The compares favorably against the S&P 500 (SNPINDEX: ^GSPC), which is at a P/E of 23. While the S&P 500 index may contain more growth-focused stocks and has provided investors with better returns over the years, amid a downturn, investors may flock to more value-oriented investments. This is why the FTSE All-World ex-US Index could make for an attractive option to consider. Historically, there's no denying it has underperformed the S&P 500. But the past doesn't predict the future, and by focusing on stocks outside the U.S., investors can better protect their portfolios amid volatile conditions. And with the fund outperforming the S&P 500 in the early part of this year, that could be a sign that investors are already beginning to pivot toward safer investments, particularly to those outside of the U.S. market. Yet another incentive for buying this ETF is for its dividend, which yields over 3% -- that's far higher than the S&P 500 average of 1.4%. It's not easy to predict where the market may be headed these days, as the threat of tariffs and trade wars is looming over global economies. That makes it crucial for investors to hedge and minimize their portfolio's risk however they can. And one option is to diversify, not just to ensure you have exposure to multiple sectors, but also to different parts of the world, which is where the Vanguard FTSE All-World ex-US ETF comes into play. It may not generate massive returns due to how diverse it is, but it can a good investment to hang on to for the sake of reducing your overall risk. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $288,966!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,440!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $526,737!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. This Vanguard Fund Invests in Non-U.S. Stocks and Is Up 8% This Year was originally published by The Motley Fool
Globe and Mail
29-03-2025
- Business
- Globe and Mail
This Vanguard Fund Invests in Non-U.S. Stocks and Is Up 8% This Year
If you're worried about the U.S. economy or simply want a way to diversify your portfolio, you may want to look at investing in companies based in other parts of the world. It can be a good way to balance out some of your risk, both in the short term and the long term. And one exchange-traded fund (ETF) that has been doing well this year is the Vanguard FTSE All-World ex-US Index Fund ETF (NYSEMKT: VEU). Here's why this can be a good investment to put into your portfolio right now. ^SPX data by YCharts It's a low-cost fund with thousands of stocks Vanguard funds are attractive options for investors because they often come with incredibly low fees, making them ideal options for the long term. Minimizing fees is important to ensure that your returns are high, and the Vanguard FTSE All-World ex-US ETF charges an expense ratio of just 0.04%. Another appealing feature of the ETF is that it contains thousands of stocks -- more than 3,800 holdings in total, with a median market cap of $48 billion. Investors get a good mix of stocks within the fund without being overly exposed to any single company. The largest holding in the fund is Taiwan Semiconductor Manufacturing, which accounts for less than 3% of the ETF's total holdings. And most stocks make up less than 1% of the fund's weight. The downside of too much diversification is that it can result in underwhelming returns, especially when it's only certain sectors of the market that are performing well. But you'll primarily be interested in the fund for its low cost and diversification, as it can provide you with some excellent long-term stability. More than 41% of its holdings are European stocks, 26% in emerging markets, and another 25% are in the Pacific region. The fund provides good value for investors Another thing investors will like about this ETF is that it averages a modest price-to-earnings multiple of less than 16. The compares favorably against the S&P 500 (SNPINDEX: ^GSPC), which is at a P/E of 23. While the S&P 500 index may contain more growth-focused stocks and has provided investors with better returns over the years, amid a downturn, investors may flock to more value-oriented investments. This is why the FTSE All-World ex-US Index could make for an attractive option to consider. ^SPX data by YCharts Historically, there's no denying it has underperformed the S&P 500. But the past doesn't predict the future, and by focusing on stocks outside the U.S., investors can better protect their portfolios amid volatile conditions. And with the fund outperforming the S&P 500 in the early part of this year, that could be a sign that investors are already beginning to pivot toward safer investments, particularly to those outside of the U.S. market. Yet another incentive for buying this ETF is for its dividend, which yields over 3% -- that's far higher than the S&P 500 average of 1.4%. Having a diverse portfolio can be more important than ever It's not easy to predict where the market may be headed these days, as the threat of tariffs and trade wars is looming over global economies. That makes it crucial for investors to hedge and minimize their portfolio's risk however they can. And one option is to diversify, not just to ensure you have exposure to multiple sectors, but also to different parts of the world, which is where the Vanguard FTSE All-World ex-US ETF comes into play. It may not generate massive returns due to how diverse it is, but it can a good investment to hang on to for the sake of reducing your overall risk. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $288,966!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,440!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $526,737!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of March 24, 2025
