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 +0.39%).
Let’s look closer at this international ETF and see if it’s a good choice for your investment…