Prediction: This International ETF Will Beat U.S. Stocks for the Next 5 Years

1 month ago 21

Ben Gran, The Motley Fool

Wed, July 29, 2026 astatine 7:50 AM CDT 5 min read

Buying planetary stocks hasn't ever been a apical precedence for American investors. Some judge that Americans don't request to ain planetary stocks due to the fact that U.S. companies marque truthful overmuch of their gross from overseas markets. And for astir of the past 10-15 years, America's tech-heavy banal marketplace has powerfully outperformed the remainder of the world.

But each of this could beryllium changing. More American investors are looking for opportunities to bargain stocks successful markets beyond the U.S. The biggest winners of the adjacent 10 years mightiness not look thing similar the tech-heavy portfolios of U.S. large-cap maturation stocks that delivered large returns for the past decade.

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Let's instrumentality a person look astatine a Vanguard planetary ETF that could assistance you pat into this inclination -- and spot if it could beryllium a bully prime for the adjacent 5 years oregon longer.

Stock investors connected a trading floor.

Vanguard probe says: International stocks could bushed U.S. stocks for 10 years

According to Vanguard research, planetary stocks successful developed markets are expected to present higher returns than U.S. stocks, including U.S. large-cap and U.S. maturation stocks, for the adjacent 10 years. One mode to put successful that taxable would beryllium to bargain the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI), which predominantly holds stocks from developed markets similar Canada, Japan, and Western Europe.

Many American investors mightiness beryllium amazed to larn this, but it's true: the Vanguard International High Dividend Yield ETF has outperformed the S&P 500 scale and the Vanguard S&P 500 ETF (NYSEMKT: VOO) for the past 5 years.

The Vanguard International High Dividend Yield ETF holds a batch of companies that are acold removed from the artificial quality (AI) trade. Instead of a tech-heavy portfolio, this money offers steadily profitable worth stocks with a heavier weighting successful industries specified arsenic pharmaceuticals, financials, and energy.

Vanguard International High Dividend Yield ETF (VYMI): 1,565 stocks, 10 years of 10.8% annualized returns

The Vanguard International High Dividend Yield ETF holds a portfolio of 1,565 stocks from 45 countries. Forty-four percent of the fund's portfolio is invested successful European stocks, with different 23.7% successful Pacific stocks, 22.4% successful emerging markets, 9.2% successful North America, and 0.70% successful the Middle East.

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