Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) Struggles To Provide Good Returns


Dallas, Texas 12/20/2013 (FINANCIALSTRENDS) – Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) is one of the larger capped exchange traded funds with a market cap of $46 billion. It has its sights set on providing appreciably better returns than what is provided by MSCI Emerging Markets Index. The fund invests close to 95 percent of its proceeds into any of the 820 emerging markets based company stock which are traded on the MSCI Emerging Markets Index. The Vanguard Group, Inc has been the long time advisor for the fund in its investment strategy.

Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) in spite of the largish market cap has been struggling to provide the requisite gains for its committed investors at the stock market. It has been a up and down past 12 months for the fund at the exchanges. Even when the stock has managed to end in the green, it has been at very negligible gains which have been clearly overshadowed by the losses it has made in the extended period.

Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) has shed close to 5.5 percent in the past year. This drop in value has been extended into the past quarter, in which it has shed close to 2.85 percent of its market value. Even in the last one month of trading the stock has been treading waters in the red zone with a 2.29 percent loss. This consistent loss at the markets has been lately turned around. But it has been a very slight improvement of 0.07 percent in the past one week of trading.

In order to make up for the loss of its investors at the markets, Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) has been paying out dividend of $1.32 per share over the past quarter. This reflects a dividend yield of 3.28 percent for the entire year.