What Is the State Street SPDR Portfolio Developed World ex-US ETF, and Who Should Buy It?

Yahoo Finance ·

International stocks are attracting investor attention. Recent Vanguard research forecasts that developed markets ex-U.S. equities could deliver annualized returns of 5.4% to 7.4% for the next 10 years, outperforming U.S. stocks. Vanguard's researchers believe that the biggest long-term economic gains from the artificial intelligence (AI) boom might ultimately go to companies in international developed markets, such as Japan, Canada, and Western Europe. These companies might be best positioned to use AI to improve productivity without incurring the costs of building AI tools and data centers. How can you buy developed market stocks outside the U.S.? One easy way to invest in these advanced economies is to buy the State Street SPDR Portfolio Developed World ex-US ETF ( SPDW +0.40% ) . Let's look closer at this international ETF and see if it's a good choice for your investment portfolio.

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Vanguard research projects that developed markets outside the US will see an average annual return of 5.4% to 7.4% over the next decade. Specifically, companies in Japan, Canada, and Western Europe are expected to benefit from maximizing productivity through AI technology adoption. Investors should consider diversifying their portfolios with global developed market assets, such as SPDW, to reduce reliance on the US market.

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Vanguard's analysis highlights a shift in expected performance, favoring international developed markets over the US. As AI integration becomes a critical driver for operational efficiency, regions with strong industrial foundations and technological adaptability are well-positioned for growth. Diversification into these regions offers a hedge against potential US market stagnation and captures opportunities in under-indexed international equities.

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