Vanguard FTSE Developed Markets ETF

VEA

Market cap $200B

The biggest takeaway from Goldman Sachs' 2026 investment forecast, at least in my view, has to be that a more active approach might be more worth considering over a passive one, especially if you subscribe to the belief that the S&P 500 is destined for 6.5% in annual returns over the next decade, which is quite modest, even disappointing, given many investors might have the expectation for a long-term average gain closer to 10%.

Both funds match each other on cost but Vanguard FTSE Developed Markets ETF holds more assets and more stocks. VEA slightly outperformed on 1-year and 5-year growth.

VEA is more affordable, but IEFA offers a higher dividend yield and slightly different sector weights IEFA excludes Canada and holds fewer stocks, while both funds share similar top positions Both ETFs are highly liquid, but VEA has delivered higher recent total returns and slightly lower drawdown over five years These 10 Stocks Could Mint the Next Wave of Millionaires ›

If you haven't thought about diversifying your equity portfolio internationally, perhaps the performance of non-U.S.

J.P. Morgan analysts expect equities in developed markets (outside the U.S.) and emerging markets to outperform the S&P 500 over the next 10 to 15 years. The Vanguard FTSE Developed Markets ETF provides exposure to the most influential stocks in developed markets like Japan, the U.K., and Canada.

SPDR Portfolio Developed World ex-US ETF and Vanguard FTSE Developed Markets ETF both earn buy ratings for global diversification and value. SPDW offers marginally superior risk-adjusted performance and lower volatility due to its optimized sampling, excluding micro-caps and focusing on core developed nations. Both ETFs provide lower P/E ratios than US markets, strong exposure to Japan's corporate reforms, and sectoral positioning in industrials and tech hardware.

Vanguard remains one of the top exchange traded fund (ETF) providers in the market.

The Vanguard Utilities ETF (VPU) provides defensive exposure with one-third to one-half of returns coming from dividends. The iShares 20 Plus Year Treasury Bond ETF (TLT) offers 4.3% yield and hedges against stock market corrections.

The international ETFs have had quite the impressive year, outperforming the likes of the Vanguard S&P 500 ETF (NYSEARCA:VOO) as well as the Invesco QQQ Trust (NASDAQ:QQQ) so far this year while rolling over far fewer bumps in the road.

In terms of top exchange traded fund (ETF) providers I think investors should consider, Vanguard remains a top pick of mine.