ETFs and Asian Stocks Stand Out in Volatile Markets

Measures such as the Shiller CAPE ratio and the Buffett indicator are signaling stretched U.S. equity valuations. The Shiller CAPE for the S&P 500 is near 40, roughly double its historical average of about 17 and the second‑highest level on record after the dot‑com bubble peak. The Buffett indicator, which compares total U.S. market value with GDP, stands at 221%, above the 200% zone Warren Buffett has described as “playing with fire.”

Against that backdrop, ETF analysis is focusing more heavily on fees, diversification and factor tilts. In consumer staples, Fidelity’s FSTA carries a 0.08% expense ratio versus 0.40% for Invesco’s RSPS, and has returned 8.34% over 12 months compared with 7.01% for RSPS. Both exhibit low beta, but FSTA’s larger asset base and narrower drawdown over five years distinguish its profile from the equal‑weight approach of RSPS.

A separate comparison of Vanguard’s VDC and First Trust’s FTXG shows similar trade‑offs. VDC, at 0.09% fees and $9.05 billion in assets, has delivered a 12.06% one‑year return and smaller five‑year drawdown than FTXG, which charges 0.60% and is focused on food and beverage names. FTXG offers a higher dividend yield, but with higher costs and deeper past volatility.

In fixed income, iShares’ IEI and Fidelity’s FIGB highlight different risk–reward profiles. IEI, a pure Treasury fund, has a lower expense ratio and shallower four‑year drawdown than FIGB, which mixes government and investment‑grade corporate bonds. FIGB’s broader credit exposure supports a higher yield but raises sensitivity to credit risk relative to intermediate‑term Treasuries.

For investors looking beyond the U.S., a set of iShares and SPDR products illustrate divergent approaches. IXUS, covering developed and emerging markets excluding the U.S., has outperformed the emerging‑markets‑only IEMG over five years and since their joint launch in 2012, despite similar top holdings and a shared tilt toward Asian technology stocks. IXUS carries a 0.07% fee versus 0.09% for IEMG and has supported stronger long‑term growth with a lower maximum drawdown.

IEMG, with 2,707 holdings and a 23% technology allocation, remains a concentrated emerging‑market option anchored in names such as Taiwan Semiconductor, Samsung Electronics, and Tencent. Its higher recent one‑year total return of 37.83% and 2.51% dividend yield sit alongside deeper historical volatility, including a five‑year maximum drawdown exceeding 37%.

SPDR’s NZAC, in contrast, layers climate‑alignment and ESG screening onto a global, largely developed‑market portfolio. Technology accounts for 32% of its 729 holdings, led by Nvidia, Apple, and Microsoft, and the fund has grown $1,000 to $1,440 over five years versus $1,073 for IEMG. That outperformance has come with a higher beta and a smaller drawdown, but at the cost of a lower yield and a 0.12% expense ratio.

Commentary on NZAC stresses its U.S. tech tilt and relatively weaker exposure to more volatile international markets, which may appeal to U.S. investors uncomfortable with emerging‑market swings. IEMG is being framed as the higher‑growth, higher‑risk counterpart, particularly for those wanting direct exposure to emerging‑market technology.

Screeners of Asian equities are surfacing distinct pockets of growth and value. A Simply Wall St list of fast‑growing Asian companies with high insider ownership highlights Zhejiang Leapmotor Technology, an EV maker with forecast earnings growth of 58.5% annually and revenue expected to rise 31% per year, supported by recent insider buying and analysts’ expectations of a 90% stock price increase and profitability within three years.

In Asian technology and AI, Yidu Tech’s healthcare data platform is cited for 21.3% annual revenue growth, ahead of the Hong Kong market average, albeit with current losses. Forecasts point to a swing to profitability within three years and earnings growth near 95.7% per year, underpinned by significant R&D spending and share repurchases totaling HK$14.77 million.

Value‑oriented screens identify Asian stocks trading materially below estimated fair value based on discounted cash flows. Examples include Takara Bio, Sino Medical Sciences Technology, and several Japanese and Hong Kong consumer names screening at roughly 50% discounts. Super Hi International, a global restaurant operator, is trading about 10.9% below an estimated cash flow value, with earnings projected to grow 39.1% annually, though recent net income has dropped sharply.

A separate 'undiscovered gems' list flags Longhua Technology Group in China, which focuses on heat transfer and energy‑saving equipment. The company has delivered 50% earnings growth over the past year, outpacing a 6.7% machinery industry average, while maintaining moderate leverage, positive free cash flow, and forecast annual earnings growth near 29%.

Several U.S. corporates are adjusting capital plans in response to shifting demand in EVs and AI. Ford has cancelled its all‑electric F‑150 Lightning pickup, redirecting investment toward hybrids and lower‑cost EVs. The automaker will record a one‑time $19.5 billion charge tied to revised EV plans and is rebalancing its future product mix to emphasize hybrids and more affordable electrified vehicles.

In semiconductors and servers, Super Micro Computer reported record fiscal second‑quarter earnings driven by demand for AI‑optimized servers and raised its 2026 revenue outlook to at least $40 billion. The company highlighted major AI data center design wins and stronger alignment with large‑scale AI infrastructure projects, though six‑month net income and EPS remain below the prior year, keeping attention on margins versus competitors.

Micron Technology has begun construction of a US$24 billion advanced wafer fab in Singapore aimed at scaling NAND and high‑bandwidth memory for AI and data‑intensive workloads. Wafer output is not expected until the second half of 2028, underscoring the long lead times and capital intensity involved as memory suppliers position for future AI‑related demand.

QuantumScape inaugurated its Eagle Line pilot production line for solid‑state batteries, using its scalable Cobra process to support OEM sampling and testing. The move shifts the company from lab‑focused development toward pilot‑scale manufacturing, with a view to future licensing. The stock has been volatile, with a 71.5% one‑year gain offset by double‑digit declines year‑to‑date and over the past month.

Biogen’s latest quarter showed adjusted EPS of $1.99 and revenue of $2.28 billion, both ahead of consensus, supported by 19% growth in revenue from newer products such as Leqembi, Skyclarys, Zurzuvae, and Qalsody. Legacy multiple sclerosis and rare disease franchises declined, with MS revenue down 14% year over year and Spinraza revenue lower on shipment timing.

Novo Nordisk shares fell nearly 15% after the company guided to 2026 sales and earnings declines of 5% to 13%, driven in part by lower U.S. GLP‑1 pricing under a government agreement. Management highlighted faster‑than‑expected uptake of its new GLP‑1 pill, with 170,000 patients on therapy within four weeks, supporting a longer‑term view that volume growth could eventually offset pricing pressure.

Valuation work continues around large consumer names. A discounted cash flow model for McDonald’s estimates intrinsic value at roughly $215.50 per share, about 51.8% below a recent price around $327, suggesting rich pricing under that framework. At the same time, a P/E comparison using a proprietary 'fair ratio' of 32.4x indicates the stock’s 27.7x multiple sits below that benchmark, implying a different conclusion on valuation.

In insurance, U.S. Bancorp and Brown & Brown both reported higher revenue for 2025 and flagged leadership transitions. U.S. Bancorp delivered positive operating leverage and will see its CEO assume the additional role of chairman in April 2026. Brown & Brown grew full‑year revenue to $5.90 billion from $4.81 billion while earnings per share softened, and it announced the passing of its chief legal officer and appointment of an interim successor.