Global ETFs Are Hitting New Highs, Pulled Up By Strong U.S. Performance

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January 26, 2017 10:16am NASDAQ:ACWI

From Taki Tsaklanos: Global stock markets are performing remarkably. U.S. stock markets went 1 percent higher on Wednesday, and leading indexes are trading at all-time highs (except for the Russell 2000, which is only 15 points from all-time highs).


The Dow Jones Industrials broke through the psychologically important 20,000 points intra-day, an event widely followed by financial media worldwide (see Bloomberg, BBC and The Guardian among many others).

Visibly, the U.S. stock market rally is pulling other global stock markets higher.

So far, InvestingHaven’s research team forecasts seem to be quite accurate. Their 2017 stock market outlook identified the profitable market segments and it was a correct call that no stock market correction is looming but rather segment rotation was ongoing.

Global stock markets at or near all-time highs: ACWI and VEU

The ACWI ETF, representing global stock markets, broke to all-time highs today. ACWI includes stocks from 23 developed and 23 emerging markets, and represents 85% of global equities. The U.S. accounts for 53% of the index. The current chart setup shows bullish momentum, and that suggests more gains will follow.

The iShares MSCI ACWI Index Fund (NASDAQ:ACWI) was trading at $61.36 per share on Thursday morning, down $0.07 (-0.11%). Year-to-date, ACWI has gained 3.70%, versus a 2.61% rise in the benchmark S&P 500 index during the same period.

ACWI currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 59 ETFs in the Global Equities ETFs category.

As said, U.S. stocks are pulling ‘foreign’ stock markets higher as well, with European and several emerging markets performing very well.

The ETF called Vanguard FTSE All-World ex-US (VEU) is trading at 18-month highs, and it just 7 percent below all-time highs. The VEU includes foreign stocks from 50 countries. Its biggest weightings are in Europe (44%), the Pacific Region (30%), and emerging markets (18%).

VEU is nearing a breakout level. The purple trendline on the next chart represents strong resistance (46.50 points). InvestingHaven’s research team considers this to be the most important price level on the chart: a break above that level would suggest a breakout, and all-time highs would likely be taken out. However, both 46.50 and 49.50 should be broken for a bullish confirmation.

global stock markets ex-US

The Vanguard FTSE All-World ex-US ETF (NYSE:VEU) was trading at $46.31 per share on Thursday morning, down $0.09 (-0.19%). Year-to-date, VEU has gained 4.82%, versus a 2.59% rise in the benchmark S&P 500 index during the same period.

VEU currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 49 ETFs in the Foreign Large Cap Blend ETFs category.


This article is brought to you courtesy of Investing Haven.


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