I will be participating in the trade on Tuesday S&P 500 It has fallen by more than 12% since the beginning of the year. What appeared to be a good year in 2025 could be, but some early profits could be a nightmare for investors.
The S&P 500 was trading at a high level prior to this sale and was extremely vulnerable to the performance of high-tech stocks given how important the position in the index was. nvidiafor example, this year it has dropped by 28%. In recent years, the index has helped it achieve a tremendous return, but that’s one of the stocks that’s now pulling it down.
So where should investors look for safety these days? Some top-performing vanguard funds may offer some attractive options. Both Vanguard FTSE Europe ETF (VGK) 1.33%)) and Vanguard International High Dividend Indew Index Fund ETF (Vimy) 1.05%)) This year has been in positive territory so far, and has easily surpassed the market.
Let’s take a closer look at the funds (ETFs) traded on these exchanges to see if they are a good investment to add to today’s portfolio.
Vimy Data based on data YCHARTS.
Vanguard FTSE Europe ETF
This Vanguard ETF gives investors exposure to Europe’s top stock. This is valuable when the US is involved in a trade war with multiple countries. European companies will not break out of their intact, but they may provide investors with a way to at least diversify and reduce their dependence on the US economy.
The Vanguard fund has over 1,200 shares. Sap, Nestleand ASML Holdings – Top 3 holdings of the fund. However, no stock accounts for more than 2% of the overall weight of the ETF. This ensures that you are less dependent on the performance of a single company.
Other attractive features of the ETF include a low cost ratio of 0.06% and a relatively high dividend yield of 3.2%, more than twice the S&P 500’s average 1.5%.
The Vanguard ftse Europe ETF is on track this year and considering that it can offer a portfolio by providing diversification, it may be a good investment that will last not only this year but for the long term.
International High Dividend Yield Index Fund ETF
Investors can diversify further with this Vanguard Fund, which focuses on stocks around the world, except in the US.
Europe accounts for the majority of fund holdings at 44%, with the Pacific region accounting for 26% and emerging markets accounting for 22%. The portfolio has over 1,500 shares, with the largest holding (Nestlé) accounting for just 1.8% of the total weight of the ETF. Among the top 3 are other names Roche and shell.
Due to its exposure to emerging markets, this Vanguard fund could be two high-risk choices on this list. However, if your goal is international diversification outside of the US market, it may still be worth making the right investment.
The fund’s cost ratio is 0.17%, but the higher the yield of 4.5%, the more it will make up for it. One of the main features of the fund is its desire for stocks that are expected to generate above average yields. For dividend investors looking for safety and recurring income, it makes this the perfect ETF to buy and hold for a long period of time.
David Jagielski has no position in any of the stocks mentioned. Motley Fool has jobs at ASML and Nvidia and recommends. Motley Fool recommends that Nestlé and Roche retain the AG. Motley Fools have a disclosure policy.
