This ETF has little appeal

Article Excerpt

VANGUARD FTSE All-World EX-US ETF $41.35 (New York Exchange symbol VEU; buy or sell through brokers) is made up of about 2,200 mostly large- and mid-capitalization stocks in 46 countries, including both developed and emerging markets. However, unlike most international ETFs, the Vanguard FTSE All-World ex-US ETF doesn’t invest in the United States. The ETF’s regional breakdown is as follows: Europe, 45.6%; emerging markets, 24.4%; the Pacific region, 23.7%; and North America (excluding the U.S.), 6.3%. Its expenses are 0.25% of its assets. The fund yields 2.1% We don’t like the Vanguard FTSE All-World ex-US ETF’s focus on Europe. Many of Europe’s major economies still need major structural reforms, including cutting social spending and removing outmoded job-protection laws, plus measures to lower both business and personal tax rates. That dramatically limits their appeal. We don’t recommend the Vanguard FTSE All-World ex-US ETF. ETF…

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