- For those investors who like the idea of buying and holding for the long term, international stocks are likely to dramatically outperform over the coming years.
- The SPDR Developed World ex-US ETF offers a well-diversified portfolio of international stocks, with much stronger long-term return prospects due to valuation mean reversion.
- The SPDW is trading almost 50% below the S&P 500 in terms of average valuation metrics.
- Due to temporarily-elevated profit margins, the current PE discount of 29.4% understates the extent of the SPDW's undervaluation versus the SPX.
For further details see:
SPDW: Shift To International Stocks Before The Valuation Gap Closes