2 Vanguard Index Funds to Buy to Beat the S&P 500 in the Years Ahead, According to Wall Street Analysts

Morgan Stanley analysts led by Lisa Shalett expect the S&P 500 (SNPINDEX: ^GSPC) to return 6.3% annually over the next seven years. That would be substantially worse than the 15% annually we've had over the last seven years. But exceptionally high starting valuations are likely to be a major headwind in the future.Indeed, the S&P 500 currently trades at one of its most expensive cyclically adjusted price-to-earnings (CAPE) ratios in history. That is particularly concerning because many experts believe the tariffs imposed by President Donald Trump will slow economic growth. But international stocks generally have more attractive valuations, so Morgan Stanley analysts see more upside in those markets.Specifically, the analysts estimate that emerging-market equities will return 8.9% annually and Asia-Pacific equities will return 7.9% annually over the next seven years. Investors can position their portfolios to benefit by purchasing shares of the Vanguard FTSE Emerging Markets ETF (NYSEMKT: VWO) and the Vanguard FTSE Pacific ETF (NYSEMKT: VPL).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool