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exchange traded funds
Emerging Markets have lagged US markets for awhile now. Emerging Markets will soon see major growth.
Global money printing
Give it a year
etf will flood the market in next 5 yr.5000 expected 60% of large etf to be comission freea lot of growth in the future
This will be interesting to watch. China forecasts are weakening, and USA markets are correcting after a strong run. Long term the USA has an election coming, and I expect market-impacting changes either way. I would think these are reasons to expect weakness in the EMs. On the other hand, there is strong support for the idea that the future growth belongs to the emerging markets, for good reasons. All said, I think the money will tip toward emerging markets opportunities, short term.
small and mid will outperform large and international will outperform domestic, on average in the long term.
Emerging markets are the way to go when the larger economies are struggling
Emerging markets will have higher growth rates than the developed markets for the foreseeable future. Vanguard is a the low cost way to get a divesified basket of stocks in these volatile but high growth markets. 2% dividend is a bonus.
Buy and hold for the really long term - but don't forget the currency risk.
Emerging markets are likely to do better than those in debt-ridden developed nations.
Ditto my EPI pitch, but for emerging markets generally.
I love the low expense ratio on this ETF. Plus it is a simple way to add quickly developing nations to my portfolio in a diversified manner.
I think with all the domestic (US) debt issues.... emerging countries are looking like the place to be.
VWO is an ETF tracking emerging markets. The fund is compelling now IMHO given its composite forward p/e ratio is only around 12x. While the fund does have some heavy allocations to cyclical industries and materials (typical of an emerging markets fund), VWO has a solid long-term track record and low expense rate. The fund has a fairly solid allocation to China (17% as of April 30) and Brazil (16%). This fund is volatile but should outperform over a five year span.
As of 05/13/11, this emerging market ETF is underperform relative to SP500 and is at its recent lows. If the stock market further deteriorates, this ETF will not go much lower than SP500. This is a defensive position with a one to two year time frame. When the market resumes bull run, this ETF will outperform SP500.
I am looking at this ETF as a means to add some foreign diversification into my portfolio. From a practical position, Vanguard's low expenses always tend to make their investments very appealing. Vanguard has made a smart move of weighting this ETF towards the major foreign economies that will be in play on the world stage in the years to come (Brazil, China, S. Korea Taiwan, etc.).Lots of countries (particularly in Europe) have had debt crisis and credit downgrade problems but investing in foreign markets now should be a good position to take given how we have inflated the USD with QE2. The world will [hopefully] catch on and our cheep but limited exports will look more appealing.
Emerging markets will outperform U.S. Doubling earnings from 2 million to 4 million can be done in a short amount of time for a company. A company turning earnings from 2 billion to 4 billion will take many...many years. This is the same principle for GDP in emerging markets. They just hit their industrial revolution in the last 10-20 years..they have allot of catching up to do...and yes they will eventually catch up.They also (China/India) have MANY, MANY more people than the U.S. Think if the average Chinese household made half of an american household...When this happens this fund will have made over 100% more than the S&P..probably more like 500%.Now..if you bought this for your retirement..I think in 40 years the average Chinese household has the capacity to be earning half of an American household.
The world keeps getting more flat. I don't see why this trend wouldn't continue.
Devaluing long term U.S. dollar, I like this over the emerging market debt such as ELD because this will give you the same benefit from a falling dollar as well as a dividend yield and more upside potential.
Emerging markets will still lead in growth. Those nations are taking the inflation threat seriously. Vanguard's ETF has the lowest expenses.
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