Trump's New Tariff Threat Makes This Vanguard ETF Best for the 'Sell-America' Trade

"The Vanguard FTSE Developed Markets ETF has handily outperformed the broader U.S. market over the past year, rising almost 37% compared with a 16% gain for the S&P 500. The outperformance stems from a combination of attractive valuations in developed markets abroad, a weaker U.S. dollar that boosts returns for American investors, and relative resilience to the tariff fallout."

"Following the Supreme Court's ruling that Trump overstepped his authority with the original emergency-powers tariffs, the President has vowed to use other U.S. statutes to impose fresh duties and hike existing ones. Analysts warn this could intensify the Sell-America shift. In that environment, the Vanguard FTSE Developed Markets ETF may be one of the best tools for investors looking to profit from the trend."

"European and Asian exporters have benefited as U.S. importers absorb higher costs, while many foreign central banks have more room to cut rates than the Federal Reserve. If capital flows into international stocks continue - as they have in recent months through record exchange-traded fund inflows - the Vanguard ETF is ideally placed to capture further upside."

Following Trump's tariff implementation and subsequent Supreme Court ruling, U.S. equities have weakened while international stocks rallied. This "Sell-America" trade reflects capital rotation into overseas markets seeking better valuations and growth rather than abandonment of U.S. assets. The Vanguard FTSE Developed Markets ETF has outperformed the S&P 500 by 21 percentage points over the past year, rising 37% versus 16%. This outperformance results from attractive foreign valuations, a weaker U.S. dollar benefiting American investors, and resilience to tariff impacts. European and Asian exporters have benefited as U.S. importers absorb higher costs. The ETF tracks nearly 4,000 stocks from developed markets including Canada, Europe, Japan, Australia, and South Korea.

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