Latest news with #VanguardTotalInternationalStockETF
Yahoo
22-05-2025
- Business
- Yahoo
2 International ETFs Drawing Massive Inflows
Despite the stunning comeback in the U.S. stock market from early April lows, investors have poured millions into international ETFs. Vanguard Total International Stock ETF VXUS and Avantis Emerging Markets Equity ETF AVEM saw solid inflows of $11.7 billion and $1.1 billion, respectively, in just one month. Investors should note that VXUS has not seen a single day of outflows in the past 52 weeks and has gathered $11.7 billion in capital in a year. This trend reflects a broader shift in investor sentiment, driven by a combination of macroeconomic factors, geopolitical developments and market dynamics. U.S. Market Volatility: The U.S. stock market is still grappling with a host of challenges, including credit downgrades, persistent inflation and trade tensions (read: Moody's Downgrades U.S. Rating: What's Next for S&P 500 ETFs?). Attractive Valuations: After more than a decade of U.S. stock market outperformance, valuations between U.S. and international stocks have reached historically wide gaps. International equities, particularly in Europe and emerging markets, are currently trading at more attractive valuations compared to their U.S. counterparts. For instance, the MSCI EAFE Index, which tracks developed markets outside the United States, has a forward P/E ratio of 14.8, nearly 20% cheaper than 18.5 for the S&P 500 markets have also shown resilience, with the MSCI Emerging Markets ex-China index surging 20% in the past month. Factors such as a weakening U.S. dollar, stabilizing Treasury yields, and signs of economic recovery in countries like China, Korea, Taiwan, and Vietnam have contributed to this Tailwinds: The weakening of the U.S. dollar has made international investments more appealing. A weaker dollar enhances the returns of foreign assets when converted back to U.S. currency, providing an additional incentive for investors to diversify Government Stimulus Abroad: Fiscal policy is another major factor. Europe has implemented fiscal stimulus measures. Germany recently unveiled a €500 billion infrastructure package aimed at bolstering economic growth, while China has ramped up fiscal support to stabilize its economy. In contrast, the United States has taken a different approach as it is grappling with inflation and fiscal challenges (read: Europe Investing Gains Wall Street Favor: Time to Jump Into ETFs?). Vanguard Total International Stock ETF (VXUS)Vanguard Total International Stock ETF offers exposure to companies located in developed and emerging markets, excluding the United States. It follows the FTSE Global All Cap ex US Index and holds a broad basket of 8,576 stocks with key holdings in financials, industrials, technology and consumer discretionary. Japan, the United Kingdom and China are the top three AUM of $90.9 billion, Vanguard Total International Stock ETF charges 5 bps in fees per year from investors and trades in an average daily volume of 4 million Emerging Markets Equity ETF (AVEM)Avantis Emerging Markets Equity ETF invests in a broad set of companies of all market capitalizations across emerging market countries and is designed to increase expected returns by overweighting securities believed to be trading at lower valuations with higher profitability ratios. It holds a broad basket of 3,530 stocks with key holdings in financials, information technology and consumer discretionary. From a country look, China takes the largest share at 27%, followed by India (20%), Taiwan (20%) and South Korea (11%) (read: Should You Buy the Dip in India ETFs Amid Pakistan Tensions?).Avantis Emerging Markets Equity ETF has AUM of $9.7 billion and charges 33 bps in annual fees. It trades in volume of more than 1 million shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Total International Stock ETF (VXUS): ETF Research Reports Avantis Emerging Markets Equity ETF (AVEM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Money Flows Into International ETFs VXUS AVEM
As U.S. markets swing and investors grapple with credit downgrades, a trade war and inflation fears, billions of dollars are flowing into ETFs that invest in international and emerging markets companies. The largest ex-U.S. international exchange-traded fund, the $90.5 billion Vanguard Total International Stock ETF (VXUS), has of late pulled off an impressive feat: It has not seen a single day of outflows over the past 52 weeks. It's pulled in $11.7 billion over that period. Over the past month, VXUS has had $1.5 billion of inflows, and its last day of outflows was in February 2023. Emerging markets ETFs are also being snapped up by investors in some cases. The $9.7 billion Avantis Emerging Markets Equity ETF (AVEM) has over the past month pulled in $1.1 billion. Investors have bid up international ETFs this year as some believe the Trump administration's tariff war will force overseas companies to build domestic industries such as defense. VXUS has gained 14% this year compared with a 1.8% gain on the Vanguard S&P 500 ETF (VOO). Still, VOO has jumped 13% over the past month, topping the 8.8% increase for VXUS. AVEM's 10% gain this year has also topped VOO's return, while its one-month gain of 11% trails that of the big S&P 500 fund. Investors may be drawn to the potential for rising valuations in the ETF, with its average portfolio price/earnings ratio of 10.2, Research Lead Kent Thune, CFP, said. 'Looking under the hood of AVEM, the low average portfolio P/E is extremely attractive compared to the S&P 500's valuation, which is more than double that,' Thune said. Investors are also drawn to the fund's top holdings, which include Taiwan Semiconductor Manufacturing Co. (TSM), Alibaba Group Holding (BABA) and Tencent Holdings (TCEHY), he said. VXUS Net Fund Flows—Source: FactSet Still, VXUS may be seeing big inflows due to its status as the "workhorse" international ETF and its inclusion in robo-advisor and model portfolio schemes at Vanguard, said Daniel Sotiroff, CFA, Morningstar Direct senior manager research analyst. He added that while VXUS and AVEM are outperforming VOO, mutual fund and ETF flows still favor U.S. investments. He said April mutual fund and ETF inflows of $2.9 billion into the foreign and large blend category were lower than typical, and overall emerging markets ETFs and mutual funds had outflows of $3.6 | © Copyright 2025 All rights reserved
Business Insider
26-04-2025
- Business
- Business Insider
The S&P 500's half-decade golden age of high valuations is over, Bank of America says
The days of high US stock valuations are over, says Bank of America's Chief Investment Strategist Michael Hartnett. Since 2020, investors have been willing to pay a premium relative to S&P 500 company earnings. So-called price-to-earnings ratios have been elevated thanks to mammoth stimulus efforts amid the pandemic and excitement around artificial intelligence developments. The optimistic outlook has propelled stocks to 146% gains from COVID-19 lows. Over that time, S&P 500 PE ratios on a trailing 12-month basis have barely dipped below 20 times and have risen as high as 41x. The average PE ratio during the last five years was just shy of 26x. But Hartnett said in a client note on Thursday that things are going to start trending toward historical norms. Since 2000, the S&P 500's average PE ratio has been 20x. During the entire 20th century, the index's average valuation was 14x. Hartnett predicts that 2025 will mark the end of the era of elevated valuations. "We say 2025 big picture is peak valuations in stocks and credit, following glory of past 5 years," Hartnett wrote. "20x has been floor for S&P 500 P/E in first half of 2020s, a decade of magnificent US exceptionalism augmented by fiscal excess and AI boom," he continued. "20x we say new ceiling for P/E as globalization reverses, Fed less independent, fiscal/monetary excess ends, 3-4% new inflation normal outside recessions, US savings rate rises." Equity valuations measure how expensive stocks are on a relative basis by looking at how much investors are paying compared to the earnings that companies actually generate. Other valuation measures, like the Shiller cyclically-adjusted PE ratio, show that US stocks remain at some of their most expensive levels in the last century. GuruFocus When valuations climb too high, long-term forward returns have historically been muted. For valuations to come down, stock prices either have to fall or earnings have to live up to or outperform elevated expectations. Given macro risks as President Donald Trump's trade war threatens a recession and another bout of inflation, Hartnett sees pain ahead for stock prices. Instead, he's bullish on safer assets like bonds and gold, as well as on international stocks — for the next couple of months, at least. "We remain H1 buyers of dips in bonds, international & gold, sellers of SPX/US$ rallies," he wrote. One way investors can gain exposure to these trades is through funds like iShares Core US Aggregate Bond ETF (AGG), the Vanguard Total International Stock ETF (VXUS), and the SPDR® Gold Shares (GLD). But it remains unclear whether a recession will materialize in the months ahead. Trump has shown that he will step back from hardline stances if investors react unfavorably. Still, 10% baseline tariffs remain on most imports, and an inflationary episode could hurt spending. Payrolls and inflation data in the coming weeks should give investors insight into the health of the economy.
Yahoo
20-02-2025
- Business
- Yahoo
2 ETFs to Buy in 2025 That Could Help Set You Up for Life
Wall Street wants you to think you need to be a rocket scientist to make money in the stock market. But investing can actually be quite simple. Exchange-traded funds (ETFs) can provide you with all the diversification you need to protect and grow your wealth. In fact, you can begin to build a solid foundation for your portfolio with just two ETFs. Read on to learn about a low-cost U.S. stock fund and a well-diversified international ETF that could help you profit from the long-term growth of the global economy. The U.S. economy remains the envy of the world, and for good reason. Strong corporate reporting standards help to protect investors while a relentless focus on innovation and efficiency drives growth. U.S. stocks, in turn, have delivered wealth-building returns of about 10% annually for almost a century. The Vanguard Total Stock Market ETF (NYSEMKT: VTI) offers you a simple, low-cost way to claim your share of this lucrative opportunity. Vanguard's ETF held positions in more than 3,600 U.S.-based companies as of the end of 2024. It weights these holdings by market value, so a sizable portion of the fund's assets is invested in some of the biggest and best businesses in the world. As of Dec. 31, 2024, industry giants Apple, Microsoft, Nvidia, Tesla, and Berkshire Hathaway counted among its top 10 holdings. Yet, Vanguard's fund also offers you access to a broad collection of mid-cap and small-cap stocks. True to its name, the Vanguard Total Stock Market ETF can thus provide you with an easy way to profit from the success of a wide range of U.S. businesses of nearly all sizes. Better still, Vanguard has consistently worked to reduce fees to better serve investors. Its funds are thus some of the most affordable in the mutual fund industry. The Vanguard Total Stock Market ETF features an ultra-low expense ratio of 0.03%. That means you'll pay only $0.30 annually for every $1,000 you invest in the fund. Vanguard also strives to make its products accessible to all investors. The Vanguard Total Stock Market ETF has a minimum investment of just $1. A fund that invests in businesses based outside the U.S. can expand your profit opportunity to include an even broader swath of the global economy. Such an ETF could also provide an additional layer of diversification to your portfolio, thereby reducing your risks. The Vanguard Total International Stock ETF (NASDAQ: VXUS) offers an excellent, low-cost way to obtain these valuable benefits. The Vanguard Total International Stock ETF held shares in over 8,500 international companies as of the end of 2024. Global titans such as artificial intelligence (AI) chipmaker Taiwan Semiconductor Manufacturing, food and beverage titan Nestle, and weight loss drug leader Novo Nordisk stood among the ETF's top 10 positions as of Dec. 31. By investing across a wide array of countries, Vanguard's ETF provides exposure to both developed and emerging markets. The fund could thus help you enjoy the relative safety and reliability of mature economies like the U.K. and Japan, as well as grant you access to the exciting expansion possibilities found in fast-growing markets like India and the United Arab Emirates. Furthermore, the Vanguard Total International Stock ETF has one of the lowest expense ratios in its category. The fund's annual fee stands at just 0.05%, which amounts to $0.50 for each $1,000 invested per year. By keeping its operational costs low, Vanguard ensures that nearly all the ETF's gains will rightfully flow to its investors. 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 $361,026!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,425!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $562,659!* 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 February 3, 2025 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, Vanguard Total International Stock ETF, and Vanguard Total Stock Market ETF. The Motley Fool recommends Nestlé and Novo Nordisk and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 ETFs to Buy in 2025 That Could Help Set You Up for Life was originally published by The Motley Fool Sign in to access your portfolio
