Recent Vanguard research suggests that international stocks, particularly developed-market equities, may outperform U.S. tech stocks in the next five to ten years, with the Vanguard International High Dividend Yield ETF (VYMI) showing strong recent returns. This trend indicates a potential shift in investment strategies, favoring global stocks over U.S. tech as valuations appear stretched.
Vanguard's research suggests that international stocks, particularly those in developed markets, are expected to outperform U.S. tech stocks over the next five to ten years. An actionable takeaway for you would be to consider diversifying your portfolio with the Vanguard International High Dividend Yield ETF (VYMI), which has delivered strong returns and offers a higher dividend yield compared to U.S. tech stocks. This ETF provides exposure to a broad range of developed-market stocks with a more attractive price-to-earnings ratio, potentially offering a compelling risk-reward profile amidst concerns of overvaluation in the U.S. tech sector.