The price-to-earnings ratio (P/E) of an ETF may seem difficult to interpret, but historically, a low price/earnings ratio does often signal that the fund may continue to drop in price, according to an article on Benzinga.
Still, some funds have the “alluring combination of potential upside at compelling valuations,” according to the article, which cited the following relatively inexpensive ETFs as well as their recently reported P/E ratios:
- iShares FTSE China 25 Index Fund (NYSEArca: FXI)
- WisdomTree India Earnings ETF (NYSEArca: EPI)
- SPDR S&P International Telecommunications Sector ETF (NYSEArca: IST)
For the full story, head over to Benzinga.com.