The S&P 500 (SNPINDEX: ^GSPC) index just finished its third straight year of 15%+ total returns. It's already up another 2% to kick off 2026 (as of Jan. 28, 2026). But there's a growing problem investors need to face. U.S. stocks have gotten historically expensive. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Currently, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is trading at a price ...

Welcome to ETF Edge, your go-to place for all things exchange traded funds. I'm your host, Dominic Chu. Geopolitical tensions, domestic headlines, currency flows, and the Fed have reignited that whole US versus international investing debate.So joining me now are John Mayer, the chief ETF strategist over at JP Morgan, alongside Tim Seymour, the chief investment officer at Seymour Asset Management. He's also a CNBC contributor. Uh gentlemen, thank you both for being here with us today for ETF Edge.Uh perhaps ...

Core Insights - Vanguard is a leading producer of exchange-traded funds (ETFs), offering over 80 options, including popular ones like the Vanguard S&P 500 and Vanguard Growth ETF, as well as lesser-known ETFs that can enhance investment portfolios [1]. Group 1: Vanguard Dividend Appreciation ETF - The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) focuses on companies that have consistently increased their annual dividend payouts for at least 10 consecutive years, avoiding the top 25% highest-yielding companies to prevent yield traps [3]. - VIG has a dividend yield of 1.6%, which is lower than many other dividend ETFs, but it emphasizes long-term growth potential rather than immediate yield [4]. - Notable holdings in VIG include companies like Broadcom, Microsoft, Apple, Visa, and Walmart, which have shown consistent dividend increases over the years [4]. Group 2: Vanguard Total International Stock ETF - The Vanguard Total International Stock ETF (NASDAQ: VXUS) provides exposure to both developed and emerging markets, making it a strategic choice for diversifying portfolios and hedging against U.S. economic downturns [7]. - Developed markets include countries with established industries and mature financial systems, while emerging markets are characterized by rapid growth and industrialization but may lack some infrastructure [8].

Core Insights - International stocks have become a favorable investment option in 2025, with the Vanguard International High Dividend Yield ETF returning 29.6% year to date, outperforming the S&P 500's 15.6% return [2][7] - The weakening dollar has contributed to the improved performance of international investments, making overseas holdings more valuable in dollar terms [8] Fund Overview - The Vanguard International High Dividend Yield ETF comprises 1,531 stocks from 40 countries, focusing on above-average dividend yields, with a current yield of 3.95%, significantly higher than the S&P 500's yield [4][7] - The fund's asset allocation includes approximately 42% in financials, with industrials, energy, and consumer staples making up an additional 24% [5] Valuation Comparison - The valuation gap between U.S. stocks and international stocks is notable, with the S&P 500 trading at around 29 times earnings compared to the ETF's valuation near 13 times for similar profit profiles [6]

Core Insights - U.S. investors now have broader access to international investments, including emerging and frontier markets, which present both opportunities and risks [1] Group 1: Emerging vs. Frontier Markets - Emerging markets are characterized by significant growth and are transitioning towards developed status, featuring liquid equity and debt markets, stable currencies, and good access for foreign investors [2] - Frontier markets are less developed than emerging markets, facing higher market volatility, lower liquidity, and potential political instability, with fewer large, stable companies available for investment [3] - There are generally more investment opportunities in emerging markets compared to frontier markets, with categorizations varying by index providers like MSCI and S&P [4] Group 2: Evaluating Investment Opportunities - Investors should assess their risk tolerance when considering investments in emerging or frontier markets, as these markets present unique political, regulatory, legal, liquidity, and currency risks [5] - Frontier markets typically exhibit greater risks and potential rewards, including rapid growth and favorable demographics, but risks can vary significantly by country [6]

Market Trends & Investment Opportunities - Overseas markets in Asia, including Japan, Korea, and Taiwan, have shown outperformance in the last month [1] - Global investors have been looking outside of the US for various reasons, and the US shutdown could further incentivize this trend [2] - Investors have increased their interest in international investing, including emerging markets and developed countries outside the US [5] - Chinese tech stocks are performing well, driven by a combination of factors, including cheap valuations and AI competitiveness [6][7] Chinese Tech & AI - Chinese internet companies were very cheap and profitable, engaging in stock buybacks [7][8] - The launch of Deepseek refocused investors on Chinese internet companies, highlighting their AI capabilities [8] - Alibaba and Tencent are considered essential "super apps" for investors seeking exposure to the Chinese market [10] - Baidu (BYU) is particularly interesting due to its perceived undervaluation, search engine leadership, and self-driving car business (Apollo Go) [10][11] - Baidu's Apollo Go self-driving unit is not fully priced into the stock [12] China vs US Infrastructure & Government Support - China has 136 cities with over 1 million people, compared to about 10 in the US, providing more areas for self-driving car development [13] - Chinese cities generally have good physical infrastructure, facilitating self-driving car technology [13] - The Chinese government, at both national and local levels, strongly supports self-driving car initiatives [14]

Group 1 - The Franklin International Low Volatility High Dividend Index ETF (LVHI) offers a unique approach to international investing by emphasizing dividends, currency hedging, and low volatility [1] Group 2 - The individual investor's analysis focuses on cash flow potential, relative value, and economic moat, combining quantitative analysis with storytelling to assess investment opportunities [2] - The investor utilizes Python and algorithms to identify overlooked or overhyped companies in the stock market, integrating both fundamental and technical analysis to enhance investment success [2] - The investor has a strong educational background in accounting and economics, holding master's degrees and pursuing a PhD, which supports their analytical capabilities in the investment field [2]