Similar-sounding names don’t mean similar exposure in the multifactor universe.
You may be surprised by what we learned.
Compelling value, attractive yield and improved economic outlook make 'EFV' worth considering.
PowerShares appears to be the latest ETF provider to join the ETF fee war.
Investors know they need international exposure. For indexers, that has typically meant a fund tied to the MSCI EAFE index. And for ETF investors, that means either the Vanguard Europe Pacific ETF (NYSE Arca: VEA) or the iShares MSCI EAFE Index Fund (NYSE Arca: EFA). These two big funds dominate the space—EFA is in the top 10 of U.S.-listed ETFs by assets, and VEA is a share class of Vanguard’s EAFE index mutual fund. But they’re not the only games in town. There’s at least one traditional cap-weighted alternative out there, not to mention a variety of alternatively weighted and strategy-driven ETFs.
U.S. investors have been told for years that they need to diversify away from the domestic market in case something bad happens here. Well, something bad has happened here, and being in international stocks hasn’t helped much. Year-to-date, the SPDR S&P 500 exchange-traded fund (NYSEArca: SPY) was down 32.64%, and for the 12 months ended Oct. 31, it was down 35.95%. That’s pretty bad. But international developed market ETFs are in even worse shape, down more than 40%.
Fundamentally weighted ETFs showed mixed performance in 2007.