Emerging Markets Set to Outperform US Stocks in the Next Decade

Emerging markets have underperformed the S&P 500 over the past decade, with the Vanguard Emerging Markets ETF (VWO) rising only 6.8% compared to the S&P 500's 83% gain. However, Goldman Sachs expects emerging markets to return 10.9% over the next decade, compared to the S&P 500's expected 6.5% return. With valuations half that of the S&P 500, emerging markets are considered "dirt cheap" and could see significant outperformance in the coming years.