Morningstar Rating

ETF Research and Analysis

by Patricia Oey
Suitability
Vanguard Emerging Markets VWO provides broad, cap-weighted exposure to emerging-markets equities and is part of Vanguard's solid lineup of low-priced, core exchange-traded funds. At this time, this ETF is in the process   Read more 

Bull Case

This is one of the cheapest emerging-markets fund.
In the coming years, emerging-markets stocks may provide diversification benefits as they are exposed to different macro trends and foreign currencies.
Long-term growth drivers for many companies in this fund include infrastructure spending and a rising middle class. Read more 

Bear Case

Emerging-markets equities are very volatile, especially during periods of high uncertainty in global markets.
Many large-cap stocks in this fund are government-owned; at times, these companies may place economic or political goals above profitability.
Slowing growth in the developed markets will temper growth in the emerging markets, many of which are very export-oriented. Read more 

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