Core Insights - The Vanguard Total International Stock ETF (VXUS) and iShares MSCI Emerging Markets ETF (EEM) differ significantly in cost, yield, and market exposure, with VXUS providing broader global diversification at a lower price compared to EEM's focus on emerging markets at a higher fee [1][2] Cost & Size Comparison - VXUS has an expense ratio of 0.05%, while EEM's expense ratio is 0.72% [3][4] - The one-year return for VXUS is 29.5%, compared to EEM's 36.8% [3] - VXUS offers a dividend yield of 3.0%, whereas EEM has a yield of 2.0% [4] - VXUS has assets under management (AUM) of $135.2 billion, significantly higher than EEM's $27.5 billion [3] Performance & Risk Comparison - Over five years, VXUS has a maximum drawdown of -29.43%, while EEM's maximum drawdown is -39.82% [5] - An investment of $1,000 in VXUS would grow to $1,297 over five years, compared to $1,079 for EEM [5] Portfolio Composition - EEM focuses on emerging markets, with major sector exposures in technology (28%), financial services (22%), and consumer cyclical (12%), holding 1,214 stocks [6] - VXUS diversifies across 8,602 stocks, with significant sector weights in financial services, industrials, and technology, featuring top positions like Taiwan Semiconductor Manufacturing Co Ltd and Tencent Holdings Ltd [7] Investment Implications - VXUS provides stable exposure to international stocks at a low cost, making it suitable for conservative investors [12] - EEM offers higher potential returns but comes with increased risk and higher costs, appealing to investors with a greater risk appetite [12]

Core Insights - The iShares Core MSCI Total International Stock ETF (IXUS) provides broad exposure to developed and emerging markets at a lower cost compared to the iShares Core MSCI Emerging Markets ETF (IEMG), which focuses solely on emerging markets and has seen stronger recent returns [1][2] Cost and Size Comparison - IXUS has an expense ratio of 0.07%, while IEMG has a slightly higher expense ratio of 0.09% [3][4] - As of February 2, 2026, IXUS has a one-year return of 35.9% and a dividend yield of 3.24%, whereas IEMG has a one-year return of 41.5% and a dividend yield of 2.75% [3] - IXUS has assets under management (AUM) of $51.9 billion, while IEMG has a significantly larger AUM of $120.0 billion [3] Performance and Risk Analysis - Over the past five years, IXUS has experienced a maximum drawdown of 30.05%, compared to IEMG's 37.16% [6] - A $1,000 investment in IXUS would have grown to $1,305 over five years, while the same investment in IEMG would have grown to $1,106 [6] Portfolio Composition - IXUS holds 4,173 stocks across developed and emerging markets, with a focus on financial services (21%), industrials (15%), and basic materials (13%) [7] - IEMG consists of 2,725 stocks from emerging economies, with a significant emphasis on technology (26%), financial services (21%), and consumer cyclicals (12%) [6][10] - Both ETFs have Taiwan Semiconductor Manufacturing as a top holding, but IXUS diversifies its exposure across various sectors and regions, while IEMG is heavily concentrated in technology [10][11] Investment Implications - International stocks have outperformed U.S. markets in 2025, driven by a weaker dollar, attractive valuations, and strong earnings growth, making both IXUS and IEMG viable options for investors [8][9] - IXUS is suitable for investors seeking comprehensive international exposure with stability, while IEMG appeals to those willing to accept higher volatility for potential long-term growth in emerging markets [11]

Core Insights - Investors added $165.4 billion to U.S.-listed ETFs in January 2026, a decrease from December's record but still significantly higher than January 2025's $107 billion [1] Group 1: ETF Inflows - International equity ETFs led the inflow rankings with $68.2 billion, surpassing the $42.7 billion that flowed into U.S. equity ETFs [2] - The iShares Core MSCI Emerging Markets ETF (IEMG) attracted $8.8 billion in January, with a year-to-date gain of 8.3%, compared to a 2.2% gain for the Vanguard S&P 500 ETF (VOO) [3] - VOO remains the most popular ETF overall, gathering $16.3 billion in January [3] Group 2: Fixed Income ETFs - U.S. fixed income ETFs saw inflows of $36.6 billion, while international fixed income ETFs attracted $15.6 billion [4] - Bond performance has been muted, with the Vanguard Total Bond Market ETF (BND) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) both up about 0.2% year to date [4] Group 3: Commodity ETFs - Commodity ETFs pulled in $4.3 billion in January, primarily due to demand for gold, with the SPDR Gold Trust (GLD) gathering $2.6 billion in inflows [5] - In contrast, silver ETFs faced significant outflows, with the iShares Silver Trust (SLV) losing $2.9 billion in January [6] Group 4: Smaller Stocks - The Invesco S&P 500 Equal Weight ETF (RSP) gained $4.4 billion in January, benefiting from the outperformance of smaller stocks over large caps in 2026 [7] - RSP is up 3.8% year to date, nearly double the gain of the market-cap-weighted S&P 500 tracked by VOO [7]

Core Insights - U.S. stocks had a strong performance in 2025, with the S&P 500 increasing by 16.4%, despite a significant drop in March and April [1] - International stocks outperformed U.S. stocks, with the MSCI World ex USA index rising by 32.6% due to a weakening dollar and shifts in investment strategies influenced by trade policies [1] - The S&P 500 has shown impressive total returns of 26.3% and 25% in the two preceding years, with an average annual return of 14.8% since 2009, significantly above its historical average [5] Investment Performance - The S&P 500's stock prices have increased at more than double the rate of cumulative earnings-per-share growth since 2009, leading to a high forward price-to-earnings (P/E) ratio of nearly 22 times forward earnings expectations [6] - The cyclically adjusted price-earnings (CAPE) ratio, developed by economist Robert Shiller, has surpassed 40, a level not seen since the dot-com bubble, indicating potential overvaluation in the market [7] Future Outlook - Shiller forecasts muted returns for the S&P 500 over the next decade, predicting average annual nominal returns of only 1.5%, which may not keep pace with inflation [8] - Investors are encouraged to consider whether international stocks can maintain their momentum and continue to outperform in 2026 and beyond [3]

Core Viewpoint - The CIO of Crossmark Global Investments anticipates that inflation will persist at elevated levels for another year [1] Group 1 - The expectation of sticky inflation suggests ongoing challenges for the economy and investment strategies [1]

Core Viewpoint - International stocks are experiencing a significant resurgence in 2025, with the MSCI EAFE Index expected to outperform the S&P 500 for only the second time since 2019, and by a considerable margin [1]. Group 1: Investment Opportunities - The Schwab International Equity ETF (SCHF) has outperformed the MSCI EAFE Index by nearly 300 basis points over the past three years, making it an attractive option for investors [4]. - The ETF primarily focuses on developed market stocks, distinguishing it from other international funds that may include emerging markets [4]. - The ETF provides exposure to nearly 1,500 stocks, with no single stock exceeding 1.6% of the portfolio, and technology stocks making up only 10.17% of the lineup, offering significant diversification compared to U.S. stock indices [6]. Group 2: Diversification Benefits - The ETF addresses the home country bias prevalent among American investors, as 40% of investable markets are located outside the U.S., presenting growth opportunities that could mitigate portfolio risk [5]. - Investing in international markets can reduce dependence on the U.S. economic cycle, potentially shielding investors from domestic recessions [7]. - The ETF is accessible with a low fee of 0.03% per year, making it suitable for long-term investors seeking diversification [10]. Group 3: Market Context - Despite the recent rally in international stocks, considerable value remains in these equities, contrasting with the higher valuations of domestic stocks [9]. - The current price of the Schwab ETF is $24.09, with a 52-week range of $17.56 to $24.41, indicating a stable investment option [9].

Core Viewpoint - Markets are experiencing rapid shifts, prompting investors to reconsider portfolio diversification strategies [1] Group 1: Market Conditions - Inflation remains persistent, affecting investment strategies [1] - International stocks are trading at significant discounts, presenting potential opportunities [1] Group 2: Investment Opportunities - Small-cap stocks may be entering a phase of earnings recovery, which could attract investor interest [1] - Some of the best-performing ETFs may emerge from sectors that have been overlooked for an extended period [1]

Market Trends - International stocks are outperforming U.S equities after a decade of underperformance [1] - Vanguard experts provide insights on the potential continuation of this trend [1]

Market Trends & Performance - International stocks and ETFs are outperforming the US stock market [1][2] - The MSCI All Country World ex USA Index is up approximately 30% year-to-date, marking its widest outperformance against broad US indexes in 16 years [3] - US dollar weakness, declining about 9% this year, boosts returns of foreign indexes in dollar terms [3] - International stocks are attractively valued after 10-15 years of underperformance versus US stocks [3] ETF Analysis & Diversification - Diversification and better valuation are reasons to consider international stock ETFs [5] - VXUS, a Vanguard ETF, holds 8,700 developed and emerging market stocks excluding the US, with a 005% expense ratio and $111 billion in assets [6] - IVLU, an iShares ETF, focuses on value characteristics, holding 343 large and mid-cap developed excluding US stocks, with a 030% expense ratio and $8 billion in assets [9] - Gwell, a Cambria ETF, is actively managed, focusing on the cheapest countries in the world with a concentrated portfolio of 113 stocks, a 066% expense ratio and $353 million in assets [10][11] Sector & Country Allocation - International stock ETFs offer more diversification to sectors beyond technology, such as financials and industrials [8] - Top countries in VXUS include Japan, China, UK, Canada, and Taiwan [9] - Japan receives approximately 30% weight in IVLU [9] Comparative Performance - Gwell is up about 47% year-to-date, IVLU is up about 37%, and VXUS is up about 30%, compared to the S&P 500 index which is up about 17% year-to-date [13]

Core Insights - The period from 2015 to 2024 was challenging for international stocks, with the MSCI EAFE Index returning 66.9%, significantly lower than the S&P 500's 239.9% gain [1] Group 1: Current Performance - The iShares Core MSCI EAFE ETF (IEFA) has shown strong performance in 2025, returning 27.6% as of October 17, outperforming the S&P 500's 14.4% gain [2] Group 2: Investor Behavior - Many U.S. investors are underallocated to international stocks, with an average weight of only 25% in their equity portfolios compared to domestic equities [4][5] - This underallocation presents an opportunity for IEFA to rally further if U.S. investors adjust their perspectives on international equities [5] Group 3: Market Opportunities - Japan is highlighted as an underowned market, with inexpensive stocks and ongoing corporate governance changes that encourage buybacks and dividends [6] - The IEFA fund allocates 24% of its investments to Japanese stocks, suggesting potential benefits if global asset allocators recognize the value in Japan [6]