ETF Research and Analysis

by Patricia Oey
Suitability
Vanguard FTSE Emerging Markets VWO provides broad, cap-weighted exposure to emerging-markets equities and is part of Vanguard's lineup of low-priced, core exchange-traded funds. The main argument for investing in international   Read more 

Bull Case

This is one of the cheapest emerging-markets funds.
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-controlled; at times, these companies may place economic or political goals above profitability.
Record-low interest rates in the developed world have helped drive strong investment flows into emerging markets. A sudden outflow of funds may result in short-term volatility in emerging-markets currencies and asset prices. Read more 

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Lost in Translation: Emerging-Markets Dividend ETFs 
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