4-Star ETFs Poised to Pop: Vanguard MSCI Pacific


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard MSCI Pacific ETF (ASE: VPL) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Vanguard MSCI Pacific and see what CAPS investors are saying about the ETF right now.

Vanguard MSCI Pacific facts


March 2005

Total Assets

$1.43 billion

Investment Approach

Seeks to track the performance of the MSCI Pacific Index, which measures the return of stocks issued by companies located in the major markets of the Pacific region.

Expense Ratio


Dividend Yield


1-Year / 3-Year / 5-Year Annual Returns

(11.5%) / 11.5% / (2.7%)

Major Holdings With High CAPS Interest (at least 1,000 active picks) and Portfolio Weight

BHP Billiton (NYS: BHP) (3.2%)
Toyota Motor (NYS: TM) (2.9%)
Honda Motor (NYS: HMC) (1.5%)


iShares S&P Asia 50 (NYS: AIA)
iShares MSCI Pacific ex-Japan (NYS: EPP)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 90% of the 91 members who have rated Vanguard MSCI Pacific believe the ETF will outperform the S&P 500 going forward. These bulls include Allstar13913 and hochnath, both of whom are ranked in the top 5% of our community.

Having gotten on board a few years ago, Allstar13913 succinctly summed up the opportunity: "This ETF covers Pacific Rim stocks with a low cost basis. I believe it will win in the long run."

In fact, Vanguard MSCI Pacific sports a low expense ratio of 0.14%. That's much cheaper than that of other Pacific/Asia ETFs like iShares S&P Asia 50 (0.50%) and iShares MSCI Pacific ex-Japan (0.50%).

CAPS All-Star hochnath elaborates on the bull case:

I like the way that Vanguard has created this fund, because it is made up of established Pacific countries not the emerging market ones. This means that we are looking at countries like Japan, Australia, New Zealand, Hong Kong, and Singapore; rather than the emerging market countries.

You may be thinking that they should have included countries like China and Korea, but Vanguard has already done that with their emerging market ETF [Vanguard MSCI Emerging Markets]. ...

So here is the deal. We are talking about big name companies that we have all heard of: BHP Billiton, Honda and Toyota Motors ... just to name a couple of the major players in this ETF.

It also pays out an annual dividend that is quite attractive. ... [I]f you have any real money sitting in an IRA or another long term account this is a great ETF to own.

What do you think about Vanguard MSCI Pacific, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track the Vanguard MSCI Pacific?Add it to your watchlist.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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