Worried About Tariffs? Buy 2 Vanguard Index Funds That Are Beating the S&P 500 in 2026.

2026-02-26 05:08:00 ET

Many experts believe President Trump's tariffs will hurt the U.S. economy. Several recent studies say U.S. businesses and consumers have borne most of the costs, and there is no reason to think that will change. While the Supreme Court recently struck down some of the duties, Trump has replaced them with a 10% global tariff .

Uncertainty about the economic impact has motivated some investors to move money from U.S. stocks into international markets. That's one reason the S&P 500 has essentially traded sideways this year, while the Vanguard FTSE Pacific ETF (NYSEMKT: VPL) has added 18% and the Vanguard FTSE Developed Markets ETF (NYSEMKT: VEA) has added 11%.

While neither index fund beat the S&P 500 over the last decade, their outperformance may continue in the months ahead if Trump's trade policies continue to sow uncertainty about the U.S. economy.

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