VEA Sees Potential Pause In Uptrend Yet Developed Markets Still Present Opportunities

Monday, 2 September 2024, 03:03

VEA is expecting a pause in the uptrend, but developed markets remain cheap investments. The underperformance is attributed to lower tech exposure. Explore why VEA ETF is still a buy.
Seeking Alpha
VEA Sees Potential Pause In Uptrend Yet Developed Markets Still Present Opportunities

VEA's Current Performance

The VEA ETF, which tracks developed markets outside of North America, has been experiencing a notable pause in its uptrend. This stagnation can be mainly attributed to its lower exposure to technology stocks compared to the S&P 500, alongside a higher emphasis on cyclical sectors that are currently under pressure.

Understanding Market Dynamics

The developed markets in question showcase potential as they remain relatively cheap in valuation. Investors should consider that despite the current pause, long-term fundamentals indicate an attractive buying opportunity.

  • Lower tech dependency
  • Higher cyclical sector involvement
  • Potential for market rebounds

Investment Perspectives

As market volatility persists, the VEA ETF can provide a strategic option for investors looking to diversify their portfolios. By focusing on affordable developed markets, investors might find resilience in their investment strategy as certain sectors begin to recover and tech stocks stabilize.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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