Vanguard FTSE Pacific ETF heavily weighted in Japan

Jun 3rd, 2016 – Comment

Dividend yield is 0.84%


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Today’s inspection of the Vanguard FTSE Pacific  ETF (VPL NYSE) is a continuation of Roger’s assignment to analyze a suggested portfolio of exchange traded funds from a website he was following.  The fund under review today holds 2,233 individual stocks with 57.8% invested in Japan, 17.3% in Australia, 11.7% in Korea, 8.8% in Hong Kong, plus smaller holdings in other countries. Here is a link to the holdings in the portfolio:

https://personal.vanguard.com/us/FundsAllHoldings?FundId=0962&FundIntExt=INT&tableName=Equity&tableIndex=0&sort=marketValue&sortOrder=desc

 

The portfolio is  invested in the following sectors ; financials 25.4%, consumer goods 20.2% industrials  17.3%, and consumer services 11.0%.  Now that we have some idea of where and what is held VPL lets take a look at the charts to see what they are telling us.

 

VPL

The three-year chart exhibits a downtrend that has been in place since April of 2015 when the units hit a 52-week high of $64.69. Worth noting are the sell signals generated by the MACD and the RSI as VPL began its retreat. The momentum indicators generated buy signals in late August of last year as a new leg up took the units up to resistance near $58.00. In late October sell signals surfaced indicating that it was time to get off the ride and capture profits

The advance was short lived as VPL broke below the 50-day moving average in December pulling back to a 52-week low of $48.6 in February of 2016. Once again the MACD and the RSI generated buy signals this time near the new lows. The units moved up but met resistance near $58.00 and have pulled back to support along the 50-day moving average.

 

 

 

VPL2

The six-month chart shines a spotlight on the buy and sell signals from the momentum indicators and the support along the 50-day moving average. The dividend yield on VPL is 0.84% which will have to be compared when looking at the other ETF’s included in this review.  As a general observation you would be best to trade this one for profit instead of buying and holding.

 

 

Next time I will continue with the analysis for Roger and consider the case for Vanguard FTSE Emerging Markets ETF (VWO NYSE).

 

Make it a profitable day and happy capitalism!

Categories: ETF
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