Motley Fool Backs 3 ETFs After Dimon Warns Stocks Look Too Expensive
Updated
Updated · The Motley Fool · Jul 26
Motley Fool Backs 3 ETFs After Dimon Warns Stocks Look Too Expensive
2 articles · Updated · The Motley Fool · Jul 26
Summary
Three ETFs — Vanguard Total Stock Market, Schwab U.S. Dividend Equity and Vanguard International High Dividend Yield — were pitched as ways for long-term investors to keep buying despite Jamie Dimon’s warning on lofty stock valuations.
Vanguard’s VTI offers the broadest exposure, holding 3,531 U.S. stocks with a 0.03% expense ratio and 9.48% annualized returns since inception, though technology now makes up 41% of the fund.
Schwab’s SCHD was highlighted as a less tech-heavy alternative: 103 stocks, a 3.30% trailing yield, a 19 P/E ratio versus the S&P 500’s 25.5, and only 9.23% allocated to information technology.
Vanguard’s VYMI pushes diversification further abroad, holding 1,565 stocks across 45 countries, yielding 3.68% and trading at a 14.6 P/E ratio after 21.11% annualized returns over three years.
The broader takeaway was that Dimon’s caution should not deter regular investors, because market timing is unreliable and diversified funds can help ride out expensive pockets of the market.