Investing in 2007 - comparing various asset classes

In this segment, we will look at the P/E ratios of various asset classes we discussed in December. The data is updated at end of December, 2006 and the market movement since then has been more or less flat with slight positive/negative movement. We will look at each of the segments and see which ones are under/over valued.

First the large caps. The funds in this segment have been analyzed earlier.

Large Value:

IWW - has a P/E of 14.02 and expense ratio of 0.25%
VTV - has a P/E of 13.02 and an expense ratio of 0.11%
SDY - has a P/E of 16.35 and an expense ratio of 0.3%

Large Blend:

VV has a P/E of 15.31 and an earning yield of 1.67%. Expense ratio is 0.07%
IWV has a P/E of 16.37 and an earning yield of 1.43%. Expense ratio is 0.2%
VTI has a P/E of 15.47 and an earning yield of 1.64%. Expense ratio is 0.07%.

Large Growth:

IWZ has a P/E of 19.68 and an earning yield of 0.83%. The expense ratio is 0.25%.
VUG has a P/E of 18.91 and an earning yield of .91%. The expense ratio is 0.11%.

Next the mid cap segment.

Midcap Value:

IWS has a P/E of 15.75 and an earning yield of 1.83%. The expense ratio is 0.25%.
EMV has a P/E of 15.56 and an earning yield of 2.12%. The expense ratio is 0.26%.

Midcap Blend:

IWR has a P/E of 17.97 and an earning yield of 1.31%. The expense ratio is 0.2%
VO had a P/E of 19.3% and an yield of 1.2%. The expense ratio is 0.13%.

Midcap Growth:

IWP has a P/E of 20.47 and an earning yield of 0.7%. The expense ratio is 0.25%.
EMG has a P/E of 19.11 and an earning yield of 0.52%. The expense ratio is 0.26%.

Smallcap Value:

IWN has a P/E of 17 and an earning yield of 1.59%. The expense ratio is 0.25%
VBR has a P/E of 14.66 and an earning yield of 1.93%. The expense ratio is 0.12%.

Smallcap Blend:

VB has a P/E of 16.62 and an earning yield of 1.23%. The expense ratio is 0.1%.
IWM has a P/E of 18.83 and an earning yield of 1.07%. The expense ratio is 0.2%.

Smallcap Growth:

VBK has a P/E of 19.67 and an earning yield of 0.41%. The expense ratio is 0.12%.
IWO has a P/E of 21.56 and an earning yield of 0.32%. The expense ratio is 0.25%.

International ETFs:

Of the international ETFs, the interesting ones are noted below:

EEM has a P/E of 14.84 and an earning yield of 1.38%. The expense ratio is 0.77%.
VWO has a P/E of 12.62 and an earning yield of 1.75%. The expense ratio is 0.3%.

EFV has a P/E of 13.25 and an earning yield of 1.67%. The expense ratio is 0.4%.

Looking at all the asset classes, it is clear that large value, large international value, the emerging market ETFs offer the best deals for the new year.