These Developed Markets Outside US Are Getting Bullish: Here's What VEA ETF Technical Chart Shows
Portfolio Pulse from Surbhi Jain
The Vanguard FTSE Developed Markets ETF (VEA) has formed a Golden Cross on its technical chart, suggesting a bullish trend for developed markets outside the U.S. VEA, which tracks the FTSE Developed ex-U.S. All Cap Net Tax Index, is primarily invested in Europe, Japan, and Australia, with a significant allocation to large-cap stocks, especially in the financial sector. It is more cost-efficient and has a broader portfolio than the iShares MSCI EAFE ETF (EFA). Alternatives to VEA include the Vanguard Total International Stock ETF (VXUS) and the Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF). Wells Fargo favors developed-market equities over emerging-market equities, with a year-end 2024 target for the MSCI EAFE Index.
January 08, 2024 | 3:49 pm
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POSITIVE IMPACT
VEA ETF has formed a Golden Cross, indicating a potential bullish trend for developed markets outside the U.S., with a strong focus on large-cap stocks in the financial sector.
The formation of a Golden Cross is a technical indicator that often precedes a bullish market trend. Given that VEA has just formed this pattern, it suggests that the ETF may experience a short-term increase in price. The ETF's broad exposure and cost efficiency compared to its peers could attract more investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
PXF is noted as an alternative to VEA, including Canadian stocks, which may influence investor decisions.
PXF is mentioned alongside VXUS as an alternative to VEA, which may have a neutral impact on its price as it competes for investor interest in the international ETF space.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
VXUS is mentioned as a compelling alternative to VEA, which may increase investor interest in VXUS.
VXUS is presented as an alternative to VEA, which could lead to a neutral impact on its price as investors consider their options among international ETFs.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
VEA ETF is highlighted as more cost-efficient and having a deeper portfolio than the iShares MSCI EAFE ETF (EFA), which may impact EFA's attractiveness to investors.
The article compares VEA favorably to EFA in terms of cost efficiency and depth of holdings. This comparison could lead investors to prefer VEA over EFA, potentially negatively impacting EFA's price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70