Stable Global Shares Defying Stock Market Turmoil
In an environment where high bond yields are dampening the appetite for stocks, it's essential to focus on quality companies, valuation discipline, and portfolio diversification. Here are three global equities recommended for a diversified portfolio:
- Vanguard Total World Stock ETF (VT)
This ETF captures the entire global stock market by tracking the FTSE Global All Cap Index. It offers broad diversification across countries and sectors with a very low expense ratio (6 basis points), making it an attractively low-cost and well-diversified investment suitable for uncertain conditions.
- Vanguard FTSE Developed Markets ETF (VEA)
This ETF targets developed economies outside the U.S., with significant allocations to Japan (21%), the U.K. (12%), and Canada (10%). Its large size, low expense ratio (0.03%), and focus on developed international markets provide diversification away from U.S. risk and exposure to growth in these economies.
- iShares MSCI EAFE Growth ETF (EFG)
This growth-oriented ETF focuses on Europe, Australasia, and the Far East with a select portfolio of 360 stocks. Though its expense ratio is higher (0.36%), it provides a more concentrated growth strategy in major international markets, which can add targeted growth potential alongside diversification.
These ETFs offer global diversification, major developed markets and emerging markets exposure, relatively low costs, and the inclusion of a growth-focused ETF (EFG) to complement broader market ETFs with potential for higher returns. Together, they form a solid foundation for a global equity portfolio that balances broad market coverage, regional focus, growth opportunities, and cost-efficiency during uncertain market environments.
Elsewhere, Singapore Telecommunications (Singapore: Z74) is excelling at redeploying strong cash flow into higher-growth international markets. Mitsubishi Electric, a Japanese conglomerate, is also making strides. Its restructuring efforts are focused on higher-margin operations like factory automation and air conditioning, which are vital for data centers. As part of this strategy, Mitsubishi Electric has undertaken restructuring initiatives, such as spinning off the vehicle-electrification unit.
Mitsubishi Electric's defence business, with advanced radar technology, is another growth pillar. The company is implementing a return-on-invested-capital strategy to improve profitability, aligning with government reforms.
Thermo Fisher (NYSE: TMO), a U.S. company, is a leader in analytical instruments and services for clinical research, diagnostics, and environmental monitoring. Despite growth moderating following the pandemic and policy headwinds in research funding, its management remains focused on improving the core business and growth rate. From 2013 to 2023, Thermo Fisher delivered annual free cash flow growth of approximately 15%.
In 2025, global equity markets have remained resilient despite a turbulent environment, with companies like Singapore Telecommunications, Mitsubishi Electric, and Thermo Fisher leading the way. Singapore Telecommunications' Indian mobile telephony is benefiting from easing competition, driving improved free cash flow. Mitsubishi Electric's restructuring efforts are paying off, with a current dividend yield of 4.7%.
Sources: 1. Morningstar 2. WTOP News
- In the face of bond yields affecting the stock market, smart investing in finance may involve considering technologies that could potentially offer higher returns, such as gadgets manufactured by Mitsubishi Electric, known for its advancements in factory automation and air conditioning.
- For those interested in business diversification, investing in global equities like Vanguard Total World Stock ETF (VT) could be a smart choice, as it offers broad exposure to various sectors and countries around the world, ensuring a well-diversified portfolio.
- As the technology sector continues to grow, finance professionals might find it beneficial to focus on quality companies with promising growth prospects, such as Thermo Fisher, a leader in analytical instruments and services for clinical research and diagnostics, that have demonstrated steady growth and resilience in uncertain market conditions.
