These Vanguard ETFs Show Where the Smart Money Is Moving Now
Momentum Trading Insights: Momentum trading, particularly in international Vanguard ETFs, is gaining traction as investors seek opportunities outside the U.S., with notable performers including the Vanguard FTSE Europe ETF and the Vanguard International High Dividend Yield ETF.
Safe Haven Investments: Amid market uncertainty, investors are also gravitating towards safe havens like U.S. Treasury bonds and healthcare stocks, with the Vanguard Extended Duration Treasury ETF and the Vanguard Health Care ETF showing strong gains in 2025.
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European Parliament's Action: The European Parliament has reportedly frozen work on the EU-U.S. trade deal concerning Greenland.
Impact on Trade Relations: This freeze may affect ongoing negotiations and future trade relations between the EU and the U.S. regarding Greenland's resources.
U.S. Capture of Maduro: The U.S. has captured Venezuelan President Nicolás Maduro, an event that signifies a shift in global power dynamics.
Market Reaction: Despite the significant geopolitical event, the stock market did not show any immediate reaction, indicating a disconnect between political events and market movements.
Investor Awareness: The situation underscores the importance for investors to pay attention to changing global political landscapes, as they can have long-term implications for markets.
New World Order: The capture of Maduro is seen as a reflection of a new world order that could affect international relations and economic strategies moving forward.
Investment Performance: In 2025, international stocks significantly outperformed U.S. equities, with South Korea's market rising 65% and Spain's by 40%, while the S&P 500 increased by about 15%.
Top International ETFs: Recommended ETFs for gaining exposure to international markets include the Franklin FTSE South Korea ETF, iShares MSCI Spain ETF, Franklin FTSE Latin America ETF, Vanguard FTSE Europe ETF, and iShares MSCI Canada Index Fund ETF, each with unique advantages and low expense ratios.
Market Drivers: The strong performance of international markets is attributed to factors such as favorable domestic policies, a decline in the U.S. dollar, and increased spending in Europe, particularly in Spain's banking sector and South Korea's tech industry.
Future Outlook: The trend of international stocks outperforming U.S. equities is expected to continue into 2026, making diversification through international ETFs a strategic investment approach.
EU's Commitment to End Russian Energy Imports: The European Union has agreed to permanently halt Russian gas imports by November 2027 and phase out Russian oil, aiming to reduce energy dependence amid the Ukraine conflict.
Phased Timeline for Gas and Oil Imports: LNG imports will be phased out by December 31, 2026, and pipeline gas by September 30, 2027, with potential extensions for member states facing low storage levels.
Legislative Actions and National Plans: A proposal to ban remaining oil imports from Russia will be introduced early next year, and EU member states must submit diversification plans for oil and gas supplies by March 1, 2026.
Impact on Russian Energy Supply: Russian gas imports to the EU have significantly decreased from 45% in early 2022 to 13% in the first half of 2025, with coal imports already banned and oil imports reduced to 2%.
Investor Warning: Jeffrey Gundlach, the CEO of DoubleLine, cautions that most financial assets are currently overvalued.
Diversification Advice: He recommends that investors diversify away from U.S. markets and suggests holding a maximum of 40% in equities, primarily in non-U.S. stocks.
International Stock Performance: International stocks, particularly through the Vanguard FTSE Europe ETF and Vanguard FTSE Developed Markets ETF, have outperformed U.S. stocks this year, with gains of 29% and 28% respectively, driven by concerns over U.S. federal debt and tariffs.
Expense Ratios: Both Vanguard ETFs have low expense ratios (0.06% for the FTSE Europe ETF and 0.03% for the FTSE Developed Markets ETF), making them attractive options for investors seeking exposure to international markets compared to the average expense ratios of similar funds.
Market Trends: Despite the recent outperformance of international stocks, historical trends show that they have consistently underperformed U.S. stocks over longer periods, with analysts predicting that U.S. equities will continue to outperform in the coming year.
Investment Recommendations: While the Vanguard ETFs may be considered for small positions, a larger allocation in S&P 500 index funds or individual U.S. stocks is recommended, as they are expected to yield better returns over the next three to five years.










