International Market ETF Performance
On Tuesday we showed you 2016 performance charts for some of the major market indices in our investment universe. Today I'm showing you the performance of the major components of the international stock ETFs we follow. I've also included for comparison purposes the S&P 500 ETF SPY in this chart. SPY is in bright red and is the first bar chart on the left. First up is how these components have done since the "Brexit" referendum. Again across the board we can see that markets have so far shaken off all the scare-mongering we saw just before the vote and right after the results were announced. Even Europe {represented here in teal blue with the ETF symbol VGK} has posted nice positive returns. Emerging market ETFs have done the best. These are represented by the last two on the far right.
Just as a reminder you can double-click on these charts in order to make them larger.
The next chart is the year to date performance of the same group, in the same order listed above. With the exception of emerging markets all of these indices have lagged the US S&P 500.
Finally just below I'm showing the same ETFs with their performance for 2015.
Notice that the biggest gainers in 2016 were some of the worst performers in 2015. This speaks to the merits of diversification. We may have a different view on diversification than most others but we do believe that not having all your eggs in one basket is the most prudent way to invest. The above charts illustrate why that can work to investors advantage over time. Also note that the S&P 500 has been the best place to invest during this period as it has for the most part since the 2008 market crash. US stocks are also currently some of the most expensive now on a relative price to earnings {PE} basis compared to most international components.
*Long ETFs related to certain of these indices in client & personal accounts. Please note positions can change at anytime without notice.
posted by CR English at 9:18 AM
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