Dimensional Emerg Mkt Price to Earning vs. Cash Position Weight Fundamental AnalysisDimensional Emerg Mkt Targeted Val B is currently considered the top fund in cash position weight among similar funds. It is currently considered the top fund in price to earning among similar funds reporting about 30.70 of Price to Earning per Cash Position Weight. Percentage of fund asset invested in cash equivalents or risk free instruments. About 40% of all global funds carry cash on their balance sheet.
Funds or Etfs that have over 40% of their value invested in low risk instruments or cash equivalents typically attract conservative investors.Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investor monitor on a daily basis. Holding a low PE stock is less risky because. When a company's profitability fall, it is likely that earnings will also go down..In other words, if you start from a lower position your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Dimensional Emerg Mkt Price to Earning Comparison