Vanguard ETF outperforms market amid U.S. volatility
The stock market is experiencing turbulence as President Donald Trump's tariff policies have created uncertainty. The S&P 500 index has dropped over 10% recently, leading to a correction. Investors are concerned due to weakening consumer confidence and economic signals. Some experts say that tariffs will negatively affect economic growth and raise prices. Business leaders from various industries have expressed similar worries. In this unpredictable environment, many investors are looking to international stocks as a safer option. This diversification can be tricky, as foreign companies often receive less attention in the market. One way to invest in international stocks is through exchange-traded funds (ETFs). The Vanguard FTSE Developed Markets ETF has been performing well this year, up 10.8% so far, while the S&P 500 has seen a decline of 3.5%. This ETF targets large companies outside the U.S., with major holdings including SAP, Novo Nordisk, ASML, and Nestlé. The ETF allows investors to access nearly 4,000 stocks, with a significant portion from Europe and Asia-Pacific. It's also cheaper than the S&P 500 in terms of price-to-earnings ratio. This lower cost might attract more investors seeking better value. Given the ongoing uncertainties surrounding tariffs and the economy, the Vanguard ETF appears to be a strong option for those wanting to move away from U.S. stocks and invest in profitable companies around the world.