When it comes to investing, many people tend to stick with the tried and true S&P 500. However, diversifying beyond this popular index can offer additional opportunities for growth and potentially higher returns.
In 2025, two ETFs to keep an eye on are the Vanguard Total International Stock ETF (VXUS) and the iShares MSCI Emerging Markets ETF (EEM). These ETFs provide exposure to international markets and emerging economies, which can help spread risk and potentially boost overall returns in a portfolio.
The Vanguard Total International Stock ETF (VXUS) offers investors a broad exposure to international stocks, including both developed and emerging markets. This ETF can help diversify a portfolio and reduce dependence on the performance of the US market.
On the other hand, the iShares MSCI Emerging Markets ETF (EEM) focuses specifically on stocks from emerging markets such as China, Brazil, and India. Investing in emerging markets can provide opportunities for high growth potential, but also comes with higher risk.
By adding these two ETFs to your investment portfolio, you can potentially increase diversification and take advantage of growth opportunities beyond the traditional S&P 500. Keep an eye on these ETFs in 2025 as they may offer a way to further diversify your investments and potentially boost returns.