Emerging Markets Set to Outperform US Stocks in the Next Decade

The S&P 500 has outperformed the rest of the world since 2008, rising 592% compared to the MSCI world index's 140% gain and the MSCI emerging markets index's 92% gain. However, this cycle is expected to reverse, with emerging markets poised to outperform US stocks over the next decade. The Vanguard Emerging Markets ETF (VWO) offers a 2.8% yield and has begun to outperform US stocks, with a 20% gain over the past year. Other emerging market options include the Brazil EWZ ETF, which offers a 5% dividend yield and has also outperformed US stocks.