Look At Vanguard Total World Stock ETF (VT) For Long Term Resilience Against Market Uncertainty

I think as investors we would also want to have some assets which are resilient to any uncertainty brought by economic events, for example, interest rates hike.

We know that interest rate hike is not new. The Federal Reserve has been raising interest rates for a year now, which has created some uncertainty in the markets.

However, despite rising rates and market uncertainty, we should stay disciplined and committed to their long-term retirement strategy, which mean to ignore the recent noise and stay invested.

A diversified, long-term portfolio would not be much affected by the current interest rate turmoil. Benefits of global diversification, and a market-weighted index ETF can provide those benefits

Vanguard Total World Stock ETF (VT) is an ETF that seeks to track the performance of the FTSE Global All Cap Index. The fund provides investors with exposure to a comprehensive set of global equities, including stocks from both developed and emerging markets.

With over 4,000 holdings spanning more than 50 countries, this ETF offers a diversified approach to global investing.

One of the key advantages of investing in Vanguard Total World Stock ETF is its ability to provide instant diversification across various geographies, sectors, and companies.

By owning a single ETF, investors gain exposure to a broad range of global stocks, thereby spreading their risk across different regions and industries.

This diversification can help mitigate the impact of any individual company or regional market underperforming, reducing the overall volatility of the portfolio.

Vanguard has long been known for its commitment to low-cost investing, and Vanguard Total World Stock ETF is no exception.

With an expense ratio of just a few basis points, this ETF offers investors an efficient way to access global markets without incurring high fees.

The low expense ratio helps preserve more of the returns for investors over the long term, which can significantly impact the growth of their investment.

Vanguard Total World Stock ETF is passively managed, meaning it aims to replicate the performance of its underlying index rather than trying to outperform it.

The fund follows a full-replication approach, holding a representative sample of the securities in the FTSE Global All Cap Index.

This strategy helps keep costs low and minimizes the potential for tracking error. Additionally, passive management ensures that investors are not subject to the risks associated with active stock selection and market timing.

This ETF provides exposure to over 4,000 domestic and international stocks around the world for a 0.07% expense ratio.

The average traded volume (3 months) was more than 1.3 millions which mean that this ETF is very much is in the radar of mid-long term investors.

With a low expense ratio of only 0.07% and a dividend yield of 2.06%. Its diversified portfolio of more than 4.4k holdings. This ETF has a return of more than 9% over period of 6 months.

On the technical analysis side, it has been a across the board BUY signal from oscillator and moving averages. We will examine that more in details on its trend reversal or how it has been performed.

As seen in the chart below, the 50-day crosses above the 200-day SMA, this indicate a “bullish crossover”. This would foreshadow a positive trend reversal since positive momentum is prevailing as the near-term price increases outpace the longer-term term average price.

So we may ask if it is a good time to buy this ETF, I think we would look at the trend reversal next.

It look like VT has been coming in and out of bullish reversal and we can expect another one coming, which would mean a short rally coming.

I would most likely prepare to buy this ETF for long term now before the price gets higher.

Even though we have seen the FA and TA for this ETF, the main decision still lies in how you are deciding your portfolio and what is your risk appetite?

But do remember that there should be consideration for some risk.

While Vanguard Total World Stock ETF offers several benefits, it is important for us to consider a few factors before investing.

To me, this ETF looks like a good fit to my long term investing plan to have a diversified stocks holdings and having a low expense ratio (0.07%) and a not so bad dividend of around 2%.

Appreciate if you could share your thoughts in the comment section whether you think you would consider to have VT in your portfolio for long term.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.)