U.S. Stocks Have Dominated for 15 Years. This Vanguard ETF Could Be the Better Bet for the Next 10.
Improving growth prospects, better value, and lesser tech exposure could make international stocks an intriguing pick for the next decade.
Overview
U.S. stocks have taught investors a powerful lesson pretty much since the financial crisis ended. Betting against the S&P 500 (SNPINDEX: ^GSPC) has largely been a futile effort.
Much of the economic and corporate earnings growth has come from U.S. companies. The early stages of the artificial intelligence (AI) bull market were driven heavily by the Magnificent Seven stocks. Over the past 15 years, the Vanguard S&P 500 ETF (NYSEMKT: VOO) has gained 781%, compared to a 212% return for the Vanguard Total International Stock ETF (NASDAQ: VXUS). That's a gap of nearly 8% per year.
Details
With that kind of leadership, it's no wonder that investing in foreign stocks can feel like a waste. But there's a problem with that thinking. The future may be nothing like the past.
Source
Originally published at www.fool.com.