In 2025, amidst market volatility caused by tariff concerns under President Donald Trump’s administration, the Vanguard FTSE Developed Markets ETF (VEA) has significantly outperformed the S&P 500. As of the latest close, the ETF has risen 10.8%, compared to the S&P 500’s decline of 3.5%. This performance divergence began shortly after Trump took office, as shown in market charts.
The Vanguard FTSE Developed Markets ETF invests in large-cap stocks outside the U.S., with major holdings including SAP, Novo Nordisk, ASML, and Nestlé. Approximately 55% of its portfolio is in European stocks, while 34.5% is in the Asia-Pacific region. The ETF’s price-to-earnings ratio stands at 15.9, making it notably cheaper than the S&P 500’s ratio of 25.
Given the valuation gap and ongoing tariff uncertainties, the Vanguard FTSE ETF appears to be a strong candidate for outperformance. For investors seeking diversification from U.S. stocks, this ETF offers exposure to large, profitable international companies.
— news from The Motley Fool
