Vanguard ETF Outperforms S&P 500, Eyes Repeat in 2026
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BTCCSquare news:
The Vanguard FTSE Developed Markets ETF (VEA) has surged 25% this year, eclipsing the S&P 500's 13% gain. Its global diversification—53% in Europe, 35% in the Pacific, and 11% in North America—positions it as a hedge against U.S. trade policy risks. Tariffs and tightening trade conditions threaten S&P 500 constituents reliant on domestic growth, while VEA's international exposure offers resilience.
Market dynamics suggest a continued advantage for non-U.S. equities in 2026. The ETF's outperformance reflects a broader shift toward geographic diversification as investors seek to mitigate concentrated risks. Developed markets outside America are benefiting from capital rotation and valuation disparities.
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