Vanguard ETF Bounces Back from Rate and Oil Jitters
The Vanguard FTSE All-World UCITS ETF USD Accumulation fund has experienced significant fluctuations in recent weeks, influenced by inflation concerns and geopolitical tensions. Despite this volatility, the fund has maintained a record close and remains one of the most heavily traded products in Europe.
In late September, equity markets worldwide declined due to stalled negotiations between Washington and Tehran, reviving oil supply worries. Investors were bracing for interest rates to remain elevated, and rising bond yields further weighed on sentiment. The fund's value decreased amidst this uncertainty, but it quickly recovered after the release of weaker-than-expected US nonfarm payrolls data.
The data showed a 29,000 job increase against economists' predictions of 90,000, slashing the odds of a Federal Reserve rate hike in October to 15 percent. Falling oil prices eased inflation concerns, and the FTSE All-World Index climbed 0.57 percent on the day.
The fund's performance over the month stands at 2.7 percent, with year-to-date gains reaching 18 percent. Its technical picture remains constructive, trading above its 50-day moving average and 200-day line.