GILLIAN KEMMERER: Welcome to Asset TV. I’m Gillian Kemmerer. Today VanEck is ringing the closing bell here at the New York Stock Exchange in celebration of the debut of the…
Apprehensions over climate change, an emphasis on global pension funds over the integration of ESG in their investments, and new markets will fuel demand for this type of bond.
At the end of 2016, 72.0% of the $180.0 billion climate-aligned bonds were listed in the stock exchanges.
The World Bank has projected an annual investment by cities of $100.0 billion through 2050 to prevent the harmful impact of climate change.
French aerospace firm Safran SA (SAF FP, +10.52%) edged out London Stock Exchange Group Plc (LSE LN, +10.38%) as the top International Moat Index performer in April. SAF FP also…
The primary detractor from U.S. Moat Index performance in April was healthcare companies, particularly pharmaceutical supply chain companies. Express Scripts Holding Co. (ESRX US, -6.93%) saw its fair value estimate…
The U.S.-oriented Morningstar® Wide Moat Focus IndexSM (MWMFTR, or “U.S. Moat Index”) posted strong returns in April and outpaced the S&P 500® Index (1.97% vs. 1.03%). The U.S. Moat Index…
The international moat index, represented by the Morningstar Global ex-US Moat Focus Index, lagged behind the benchmark index in April.
For April, the top three detractors in MOAT were healthcare companies like AmerisourceBergen (ABC), Express Scripts (ESRX), and McKesson (MCK).
Morningstar helps investors choose companies with economic moats. “Economic moats” refers to companies’ ability to obtain an advantage over competitors.
A higher allocation to Asia could certainly provide diversification benefits to investors while enhancing their risk-adjusted returns.
The EAFE Index provides exposure to slow-growing developed markets while disregarding Asia’s fast-growing markets (FXI) (INDA).
The correlation between US and international markets varies depending on market cycles.
In the short term, Asian benchmarks and ETFs have also performed better than US-focused funds.
Many Asia benchmarks covering high market capitalization across the region provide exposure only to Chinese stocks (FXI) (EWH) listed in Hong Kong, also known as H-shares.
Although American investors have focused on domestic markets in the past, investors seeking long-term capital appreciation need to focus on Asia as well.
The rapid rise in income levels and robust population growth in Asian nations (AAXJ) should sustain strong consumption growth.
Total factor productivity measures increases in overall output due to technological advancement without an increase in inputs.
For the last three decades, Asia has posted higher economic growth than any other region of the world.
Asian economies’ rapid urbanization is notable. A shift is expected to unfold in the next few decades, which should boost development and business growth.