Overview
- International diversification is pushed to the forefront, with VXUS up about 24% in 2025 and reported to beat the S&P 500 by roughly 10 percentage points, while VEU also tops the index and yields about 2.7%.
- For income and lower volatility, recommendations highlight VYMI at roughly a 4% yield with a 0.17% fee and broad non‑U.S. exposure, alongside SCHD for U.S. dividend stocks.
- VOO is reiterated as a core anchor for long‑term investors, tracking the S&P 500 at a 0.03% expense ratio and mirroring the index’s historically strong average returns.
- To balance valuation concerns, VIG is cited for dividend growth with a 0.05% fee and VUG for broad growth exposure, offering low‑cost diversification without stock picking.
- For technology and AI, VGT is framed as a cost‑efficient, diversified way to own leaders such as Nvidia and Microsoft, while defensive options like VPU and TLT are flagged for dividend support and a Treasury yield hedge.