A Week of Double Trouble for Vanguard’s All-World ETF: Broadcom’s Miss and Iran’s Shadow

Broadcom's weak AI sales forecast, hotter US inflation, and Iran tensions hit the Vanguard FTSE All-World ETF, dragging it to 158.36 euros.

The Vanguard FTSE All-World ETF has been hammered from two directions in a single week. A 3.62% slide over seven days dragged the fund to 158.36 euros, as a disappointing outlook from chipmaker Broadcom coincided with a sudden escalation in US-Iran hostilities and a hotter-than-expected US inflation reading.

Broadcom delivered a mixed bag in its second-quarter 2026 results. Revenue of $22.19 billion breezed past estimates, but the company’s forecast for AI chip sales in the third quarter came in at just $16 billion — well short of the $17.2 billion analysts had penciled in. Chief executive Hock Tan also declined to lift the full-year AI revenue target from $100 billion, leaving investors underwhelmed. The stock crashed 15% in response, dragging down the Philadelphia Semiconductor Index by more than 6% at one point before it clawed back to a 2% loss by the close.

That was enough to knock the wind out of the broader tech sector. The Nasdaq Composite shed over 4%, with memory makers Micron and Western Digital losing as much as 7%. Equipment suppliers ASML and Applied Materials also suffered heavy losses. Because US stocks account for roughly two-thirds of the ETF’s holdings and the technology sector alone makes up 25% of the portfolio, the pain was felt directly in the fund’s net asset value.

Meanwhile, a separate shock rattled markets midweek. The US Consumer Price Index for May jumped 4.2% year-on-year, the highest reading in over three years, driven by a surge in gasoline prices after the downing of an American helicopter and subsequent US strikes on Iranian air defense positions. Core inflation, stripping out energy, held at 2.9%, but the geopolitical turmoil pushed traders to reassess the Federal Reserve’s path. While the central bank is expected to keep rates steady at its mid-June meeting, the market now prices in a rate hike by December.

The combination sent the ETF down a further 1.01% on Wednesday alone, to 159.22 euros, wiping out a chunk of the fund’s year-to-date gain — which still stands at roughly 9%. The 52-week high of 165.24 euros, set in early June, now lies just over 4% away. Over the past twelve months, the fund has returned nearly 22%.

Options markets suggest some investors are betting on a swift bounce. Christopher Jacobson of Susquehanna notes a wave of put-selling on beaten-down semiconductor names such as Broadcom and Micron — a classic contrarian wager on a recovery. Stacy Rasgon, an analyst at Bernstein, counsels patience. Broadcom’s revenue and earnings are still growing by more than 50% annually; a quarter or two of digestion is “perfectly fine” given that trajectory, he argues.

Away from the tech and geopolitical noise, the European Central Bank takes center stage on Thursday, June 11. Markets have fully priced in a 25-basis-point rate hike to 2.25%, with eurozone inflation running at 3% — well above the ECB’s target. Rising oil prices tied to Middle Eastern tensions are adding to the inflationary pressure.

For the €40 billion Vanguard All-World ETF, the near-term path depends on how these cross-currents evolve. Its diversification across more than 3,500 holdings softens individual stock shocks, but the concentrated weight of US tech and the macrodrivers of central bank policy and geopolitical risk will remain the decisive forces in the coming days.