Stockchase Opinions

John Hood Vanguard Emerging ETF VWO-N COMMENT Jun 03, 2019

Doesn't include South Korea. He doesn't have more than 10% in EM. It is a lot more risk than North American.
$40.880

Stock price when the opinion was issued

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TOP PICK

Investors need to look outside the borders of North America, and start looking at Europe, Asia and the emerging developing markets. With this ETF, you have a broad market cap-weighted exposure to companies in countries like China, Taiwan, India, South Africa and Brazil. Emerging markets has been the clear winner this year. Looking at valuations, the EM index is trading at 14.8X Forward Price Earnings, a 25% discount to the S&P. Valuations are very, very attractive.

PAST TOP PICK

(A Top Pick August 24/17, Down 6%) Took a stop loss in June, and bought US equities. Long-term, EM is the place to be, but it’s going to have its highs and lows. At some point, once sentiment turns, it’s a spot to get back into.

PAST TOP PICK
(A Top Pick Dec 07/17, Down 8%) Got out in June as tensions with China started to increase. 1/3 of this ETF is in China. Some of the EM now looks cheap. But he prefers to wait to see where it is going.
TOP PICK
MER: 0.14%. He likes the low MER. It doesn't include South Korea in the mix but the performance is very similar to the other ones with lower MER.
BUY
An ETF for an RESP. He's focusing his own son on emerging markets. The U.S. stock market is now the most expensive in the world with the least-accomodative liquidity (via U.S. Fed Powell). Go global.
BUY
An ETF to preserve capital if you hold a lot of US dollars? Move into emerging markets in Europe and Japan. See his top picks and past picks up (LEMB) today, but also consider VWO for broad exposure. For a senior, make sure to diversify your portfolio.
TOP PICK
He likes their exposure to China and their low fee structure. The market is more dovish on the country. He does not see a recession in that part of the world. Yield 2.48%
BUY
VEE VS. VWO VEE is a past pick--it's the best emerging market ETF in Canada. Excellent at a 0.25% MER, covering India, which is a star performer in the emerging markets. VEE is in Canadian dollars vs. VWO whch trades in USD, so you can't put it in a TFSA. Both are good though.
PAST TOP PICK
(A Top Pick Feb 14/19, Up 11%) He owns few emerging markets, but glad this worked well.