Not exact matches
When you purchase a
broad swath of equities, say an S&
P 500
index fund, the returns you can expect over the next decade or so comprise four building blocks: the starting dividend yield, projected growth in real earnings per share, expected inflation, and the expected change in «valuation» — that is, the expansion or contraction in the price / earnings (
P / E) multiple.
iShares Latin America 40
Index Fund (NYSEARCA: ILF)
P / E: 12 Yld: 2.88 % 1 - yr ret.: -12.8 % If you want
broad exposure to Latin America, ILF is a good bet.
I don't think you should overlook a
broad index fund such the total U. S. market
index, total international
index, S &
P index just to name a few.
2Shiller
P / E ratio is a valuation measure, generally applied to
broad equity
indices, that uses real per - share earnings over a 10 - year period.
However, I do not think the case is as strong as is the case that 10 - year and 20 - year returns can be predicted by looking at the
P / E10 level that applies on the day a purchase of a
broad index fund is completed.
The negative 1 percent real number is the most likely 10 - year annualized return for a purchase of a
broad index fund purchased at a
P / E10 value of 44.