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A tale of two decades for U.S. and non-U.S. equity

Feb 12, 2021
Expert perspectives

 

The past 10 years have seen U.S. equity strongly outperform its international peers, largely because investors expected the U.S. economy to grow faster and it did. Using a sum-of-parts framework to look at the drivers of that outperformance—valuation expansion, earnings growth, dollar appreciation—Vanguard research finds that continued long-term outperformance of U.S. equities is unlikely. We expect that investors who maintain globally diversified equity allocations will be rewarded in the years ahead.

Read more in A Tale of Two Decades: Past Is Not Prologue.

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