Core Insights - Investing in stocks can be a viable path to becoming a millionaire, with the stock market delivering average annual returns of 10% over the past 50 years [1] - The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) has outperformed both the S&P 500 and Nasdaq-100 indices in the past year, with average annual returns of 14.9% over the last five years [2] - The Vanguard International High Dividend Yield ETF has achieved average annual returns of 11.7% since its inception in February 2016, indicating a potential growth of an initial investment of $10,000 to approximately $30,000 by February 2026 [4] Performance Analysis - The Vanguard International High Dividend Yield ETF has benefited from the strong performance of international stocks, with the Vanguard Total International Stock ETF (NASDAQ: VXUS) gaining 20.6% in the past year compared to the S&P 500's 14.4% increase [5] - This ETF focuses on international large-cap stocks that are expected to provide higher-than-average dividend yields, offering exposure to established and profitable international companies [7] Holdings Overview - The top holdings of the Vanguard International High Dividend Yield ETF include major pharmaceutical companies like Roche and Novartis, significant banks such as HSBC Holdings and Royal Bank of Canada, and oil and mining companies like Shell and BHP Group [8] - A majority of the fund's investments are in developed economies, with only 20.7% allocated to emerging markets [8]

Core Insights - The article highlights three ETFs that are currently outperforming the market, which are not the typical choices investors might consider [2][6]. Group 1: ETF Performance - The Invesco S&P 500 Equal Weight ETF (RSP) has shown a year-to-date total return of +0.49%, benefiting from broader market leadership and reduced concentration risk [7][10]. - The VanEck Uranium and Nuclear ETF (NLR) has a year-to-date total return of +6.16%, capitalizing on rising global power demand and energy security concerns [7][12]. - The Vanguard Total International Stock ETF (VXUS) has a year-to-date total return of +1.62%, providing a low-cost way to diversify away from U.S. dominance with a trailing price-to-earnings ratio of about 18.2x compared to the S&P 500's 27.6x [7][18]. Group 2: Investment Strategies - RSP employs an equal-weighting strategy, resetting each of the 500 companies to roughly a 0.2% weight quarterly, which helps mitigate concentration risk and allows for a natural buy low, sell high effect [9][10]. - NLR is not solely focused on uranium mining but includes utilities and industrial firms involved in nuclear power infrastructure, thus benefiting from the entire nuclear value chain [13][14]. - VXUS offers exposure to over 8,700 stocks across developed and emerging markets, making it a straightforward option for international diversification [20].

Core Insights - U.S. investors exhibit a strong home country bias, with portfolios heavily weighted towards domestic stocks, often exceeding the U.S.'s 60% share of global market capitalization [2][3] - Vanguard's 2026 market outlook suggests modest returns for U.S. equities at 4% to 5% annually, while international stocks are projected to perform better with returns of 5% to 7% [4] - The high cyclically adjusted price-to-earnings (CAPE) ratio of 37.92 indicates that high starting valuations are historically linked to lower future returns [5] Investment Strategies - Investors can diversify globally without overhauling their portfolios by using low-cost ETFs, such as the Vanguard Total International Stock ETF (VXUS), which has an expense ratio of 0.05% and provides exposure to over 8,700 stocks [6][7] - VXUS offers comprehensive global diversification, covering both developed and emerging markets, while the Vanguard International High Dividend Yield ETF (VYMI) appeals to income-focused investors with higher yields and lower valuations [8]

Core Insights - The S&P Indices Versus Active (SPIVA) study indicates that a significant majority of active fund managers underperform their benchmark indices, with 89.93% of large-cap funds underperforming the S&P 500 over the past 15 years [2][3] - In 2026, three ETFs have outperformed the S&P 500, suggesting a shift in investor strategy towards alternative approaches amid a crowded trade in mega-cap tech [4][5] ETF Performance - The SPDR S&P 500 ETF Trust (SPY) has an AUM of $651.31 billion and a year-to-date total return of -3.63% as of March 23 [5] - The Invesco S&P 500 Equal Weight ETF (RSP) has an AUM of $84.26 billion with a year-to-date return of +0.49% [5] - The VanEck Uranium and Nuclear ETF (NLR) has an AUM of $4.54 billion and a year-to-date return of +6.16% [5] - The Vanguard Total International Stock ETF (VXUS) has an AUM of $145.8 billion and a year-to-date return of +1.62% [5] Market Trends - There is a noticeable shift in the market as investors are diversifying away from the "Magnificent Seven" tech stocks, exploring alternative strategies such as international diversification and thematic investments [6][8] - RSP offers a balanced approach to the S&P 500 by reducing concentration risk through equal weighting, while NLR provides a diversified play in the nuclear sector [7][8] - VXUS offers low-cost broad diversification outside the U.S., aiding in portfolio balance over full market cycles [8]

March is halfway over, and there continues to be no shortage of reasons for investors to worry. Whether it's fears of disruption from artificial intelligence, ongoing geopolitical tension, or just general macro uncertainty, investors are thinking about possible moves to make for their portfolios.As we head into April 2026, what should you be buying? It's time to think outside the U.S.One of the best ways to ensure long-term investing success is to focus on building a diversified portfolio. Not only does th ...

Core Viewpoint - Investing in exchange-traded funds (ETFs) is an effective strategy for gaining exposure to multiple companies while mitigating risk associated with individual stocks [1] Group 1: Vanguard ETFs - Vanguard offers a range of ETFs that are suitable for long-term investments, including the Vanguard S&P 500 ETF (VOO) and the Vanguard Total International Stock ETF (VXUS) [2] - The Vanguard S&P 500 ETF tracks the performance of the 500 largest American companies, making it a strong long-term growth bet despite fluctuations in the U.S. economy [2] - The S&P 500 index has become increasingly tech-heavy, with technology now comprising 33.4% of the index, while still representing all 11 major sectors [3][4] Group 2: Sector Representation - The sector breakdown of VOO includes: Information Technology (33.4%), Financials (12.9%), Communication Services (11%), Consumer Discretionary (10.4%), Health Care (9.4%), Industrials (8.6%), Consumer Staples (5%), Energy (3.2%), Utilities (2.2%), Materials (2%), and Real Estate (1.9%) [4] - The companies within these sectors are industry leaders with a history of sustained success, contributing to their inclusion in the index [5] Group 3: Performance and Costs - Although VOO has seen a slight decline of nearly 1% through March 11, 2026, its long-term potential remains strong, with historical average annual returns around 10% [6] - The ETF has proven to be a reliable method for wealth generation over time, supported by a low expense ratio of 0.03%, allowing investors to retain more of their gains [7] Group 4: International Exposure - The Vanguard Total International Stock ETF (VXUS) focuses on international stocks, providing a hedge against downturns in the U.S. economy, despite historically underperforming the S&P 500 [8]

Core Viewpoint - The narrative of "American exceptionalism" in the stock market has shifted, with non-U.S. stocks outperforming U.S. stocks over the past year [2]. Group 1: Performance of International Stocks - The Vanguard Total International Stock ETF (VXUS) has increased by approximately 25% in the past year, surpassing the S&P 500 index [2]. - The Vanguard International High Dividend Yield ETF (VYMI) has delivered total returns of 45.5% in the past year and average annual returns of 11.8% over the past 10 years [3]. Group 2: Characteristics of VYMI - VYMI is diversified, holding 1,535 international stocks, with 43.6% from Europe, 26.4% from the Pacific, and 21.1% from emerging markets [5]. - The fund focuses on international companies expected to provide higher-than-average dividends, with a dividend yield of 3.3%, compared to the S&P 500's 1.1% [6]. Group 3: Market Trends and Outlook - Concerns about AI stocks have led investors to seek opportunities in international markets, with forecasts suggesting non-U.S. stocks will outperform U.S. stocks over the next decade [7]. - VYMI aligns with the trend towards international and value stocks, featuring holdings that include pharmaceutical companies, banks, and major brands like Toyota and Nestlé [8].

Core Viewpoint - U.S. stock investors are experiencing lackluster performance in 2026, with the S&P 500 up only 0.5% year to date and the Nasdaq-100 down approximately 1.2% due to AI fears and a sell-off in software stocks [1][2] Group 1: U.S. Stock Market Performance - U.S.-based investors have withdrawn about $75 billion from U.S. stocks in the past six months, with $52 billion of those outflows occurring since January 1, 2026, marking the fastest pace of withdrawals in the first eight weeks of a new year since at least 2010 [2] - The S&P 500 index has shown minimal growth, while the tech-heavy Nasdaq-100 has faced declines, indicating a challenging environment for U.S. equities [1] Group 2: International Stock Market Performance - International stocks have significantly outperformed U.S. stocks, with some markets like South Korea's rising approximately 177% over the past year [5] - U.S. investors have allocated $26 billion to emerging market stocks in 2026, with South Korea and Brazil being the primary beneficiaries [5] Group 3: Reasons for International Stock Growth - Factors contributing to the strong performance of international stocks include a declining U.S. dollar, concerns over high valuations and risks associated with AI stocks, and favorable policy changes in other countries [7] - Optimism regarding sustained economic growth and rising earnings in international markets is seen as a major driver for the outperformance of international stocks compared to the U.S. market [7] Group 4: Investment Options - The Vanguard Total International Stock ETF (VXUS) is recommended as a viable option for investors looking to diversify away from U.S. stocks, offering exposure to 8,691 stocks with a low expense ratio of 0.05% [8] - VXUS has outperformed both the S&P 500 and Nasdaq-100 over the past year, with an average annual return of 10.6% over the last decade and a price-to-earnings ratio of 19.1, suggesting that international stocks may be undervalued compared to U.S. stocks, which have a P/E ratio of 27.6 [11]

Core Insights - Vanguard Total International Stock ETF (VXUS) is recognized for its lower cost, higher yield, and substantial assets under management (AUM), while State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM) focuses more on technology and has shown stronger growth over the past five years [1][2]. Cost and Size Comparison - VXUS has an expense ratio of 0.05% compared to SPGM's 0.09% - The one-year return for VXUS is 34.7%, while SPGM's is 25.2% - VXUS offers a dividend yield of 2.9%, significantly higher than SPGM's 1.8% - VXUS has a beta of 0.73, indicating lower volatility compared to SPGM's beta of 0.90 - VXUS manages $617.73 billion in assets, whereas SPGM has $1.5 billion [3][4]. Performance and Risk Comparison - Over the past five years, VXUS experienced a maximum drawdown of -29.43%, while SPGM had a drawdown of -25.92% - An investment of $1,000 in VXUS would have grown to $1,329, while the same investment in SPGM would have grown to $1,556 [5]. Fund Composition - SPGM tracks a broad global index with a 27% allocation to technology and holds approximately 2,939 stocks, with major positions in Nvidia, Apple, and Microsoft [6]. - VXUS excludes U.S. stocks and invests in over 8,602 international companies, focusing on financial services, technology, and industrials, with smaller top holdings [7]. Investment Implications - Investors often seek international funds to reduce exposure to dominant U.S. stocks, influencing the choice between VXUS and SPGM - VXUS provides diversification away from the U.S., while SPGM maintains a significant U.S. presence in its portfolio [8][11].

Group 1 - Active fund managers are experiencing one of their best years in nearly two decades, with 57% of large-cap active mutual fund managers outperforming their benchmarks in 2026, significantly above the long-term average [1] - Despite the current success, long-term data indicates that 84% of large-cap active mutual funds underperformed their benchmarks over the past 10 years ending in 2024 [1] - The surge in investment in index funds over the past couple of decades is attributed to high fees and underperformance of active funds, leading investors to prefer ultra-low-fee index ETFs that match the index [2] Group 2 - The Vanguard Total Stock Market ETF (VTI) offers comprehensive coverage of the U.S. equity market, including approximately 3,500 stocks, with a low expense ratio of 0.03% [6] - The Vanguard Total International Stock ETF (VXUS) provides extensive coverage of international stocks, investing in around 8,600 stocks across developed and emerging markets, with an expense ratio of 0.05% [8] - A recommended long-term portfolio strategy involves using two ETFs: one for U.S. stocks and one for international stocks, which can effectively build a diversified equity portfolio [3]