Emerging market stocks have been red-hot over the past year amid a global rise in asset prices fueled by economic confidence. As a result, exchange-traded funds that track these companies have become an increasingly bigger focus among investor portfolio decisions.
The most common starting place in the hunt for emerging market exposure are the largest and most well-known funds in this group. The Vanguard FTSE Emerging Market ETF (VWO), for instance, has over $68 billion dedicated to a diverse group of nearly 5,000 stocks spread throughout the globe. China, Taiwan, India, and Brazil dominate the top country rankings in this broad index for a miserly cost of just 0.14% annually to own.
In this month’s video, I look at the overall trends in global stock markets with particular emphasis on the U.S. dollar impact. Chart review includes analysis of U.S. stocks, international stocks, interest rates, oil prices, and volatility. Observations of risk and reward are noted throughout, with an emphasis on trend following and sensible portfolio management strategies. Recorded on July 26, 2017.
Emerging market stocks have been the perennial underdog for the last half decade. Their persistent underperformance has been blamed on commodity fluctuations, currency woes, and a host of other fundamental headwinds. Nevertheless, these regional stocks are making a bold statement in the first quarter of 2017 that may ignite further interest in their ongoing growth potential.
A screen of the top performing, non-leveraged or inverse exchange-traded funds through the first three months of the year reveals a pointed theme. Brazil, China, India, Argentina, and other emerging market indexes mounted the strongest returns of all asset classes. Of those nations, smaller company shares were the biggest standouts.
In this month’s video, I look at key trends developing in global stock and bond markets. Chart review includes analysis of large-cap, small cap, emerging market, high yield, interest rates, and gold prices. Observations of risk and reward are noted throughout with an emphasis on caution for new money at this phase of the rally in stocks. Recorded on March 7, 2017.
Investors are likely feeling emboldened by the strength of stocks as we close out the final month of 2016. Bullish enthusiasm can be infectious and now the race is on to determine which sectors or regions will be the top-performing areas of the market in 2017. While there is no way to know where the winner will be ahead of time, there is one noteworthy area that has piqued my interest – emerging markets. Read more