Where are the ETF investment opportunities?
The Effect of Valuation on Expected Returns
The chart illustrates the effect of current valuation on expected return over the next five years. Buying undervalued ETFs results in positive valuation returns. Buying overvalued ETFs results in negative valuation returns. Certain individual Japan, Russia and Brazil ETFs offer the best opportunities for valuation returns, while oil, gold and US equities ETFs the worst.
