Those are the elements to consider with these ETFs, but there is still upside potential with these ETFs. Japan and the Eurozone tell that story.
Rates in Japan and the Eurozone are low and expected to remain that way. It is entirely possible the Federal Reserve raises rates before the European Central Bank or the Bank of Japan. Japan, the world’s third-largest economy, is the largest country weight in IFGL, RWX and VNQI at an average allocation of 24.2%.
Additionally, these ETFs do not skimp on Eurozone exposure. For example, six of the 18 countries represented in RWX are Eurozone nations and combine for 16% of the ETF’s weight, according to State Street data.
Vanguard Global ex-U.S. Real Estate ETF