VGK Boasts Little With Lots Of European Wallet Share

Summary

  • VGK trades at too high of a multiple given its exposures which are not that well positioned in relation to weakening European economic power.
  • Finance exposures have some push from slowly rising rates in Europe, and healthcare is resilient, but the rest have a lot of wallet share in a weakening Europe.
  • In the world order, Europe is the one that is losing the most this decade. While good deals can be found on European markets, broad bets like VGK are weak.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »
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Leestat

Vanguard FTSE Europe ETF (NYSEARCA:VGK) gives investors a broad exposure to Europe, but there's not a whole load of reasons to want that. While some of the exposures are resilient, all have a fair bit of wallet share in Europe. For US investors

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This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

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