VXUS: A Mix Of Hot Valuations, And High Dividends To Diversify A Portfolio
Summarize this article with:
Financial Serenity1.51K FollowersFollow5ShareSavePlay(11min)CommentsSummaryVanguard Total International Stock Index Fund ETF has attractive valuations, a 2.77% TTM dividend yield, and broad diversification across developed and emerging markets.VXUS [IMO] trades at a 35% forward discount to the S&P 500, with a P/E of 16.9x and EPS growth of 14.3%, supporting a bullish medium-term outlook.Key catalysts include fiscal expansion in Europe and Japan, as well as potential FX tailwinds from a weaker dollar, enhancing VXUS's return potential.Risks center on inflation shocks and monetary tightening in Europe and Japan, but these [IMO] are expected to be transitory, preserving VXUS's diversification value. J Studios/DigitalVision via Getty Images In the last decade, having the Vanguard Total International Stock Index Fund ETF (VXUS) in a portfolio would not have brought either a reduction in volatility or competitive returns. But it's natural. In the lastThis article was written byFinancial Serenity1.51K FollowersFollowFinancial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market.
On Seeking Alpha, we combine insights from rigorous data analysis with actionable opinions and ratings on ETFs and other trending instruments in the asset management space. Our mission is to deliver valuable, data-driven perspectives to help investors make informed decisions in this ever-evolving market.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The author expresses only personal opinions and does not provide financial advice. The content is for informational purposes only and should not be considered as investment recommendations. The author assumes no responsibility for any investment decisions made based on this article. Always conduct your own research or consult with a financial advisor before making any investment choices. The author makes no guarantees regarding the data, and the user agrees that the author shall not be held liable for the user's use of the data.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.