Vanguard FTSE All-World ex-US Small-Cap Getting Very Oversold

In trading on Monday, shares of the Vanguard FTSE All-World ex-US Small-Cap ETF (Symbol: VSS) entered into oversold territory, changing hands as low as $126.985 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Vanguard FTSE All-World ex-US Small-Cap, the RSI reading has hit 27.1 — by comparison, the RSI reading for the S&P 500 is currently 41.8. A bullish investor could look at VSS's 27.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), VSS's low point in its 52 week range is $117.3511 per share, with $142.2499 as the 52 week high point — that compares with a last trade of $127.39. Vanguard FTSE All-World ex-US Small-Cap shares are currently trading down about 3% on the day.

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