2 Vanguard Index Funds to Invest in Now — Wall Street Analysts Predict They Will Outperform the S&P 500 in the Next 10 Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 29 2025
0mins
Should l Buy MUFG?
Source: Fool
Goldman Sachs Forecast: Goldman Sachs projects the S&P 500 will return 6.5% annually over the next decade, while Asian and emerging-market stocks are expected to outperform with returns of 10.3% and 10.9%, respectively, in local currencies.
Investment Recommendations: Investors are advised to consider the Vanguard FTSE Pacific ETF and the Vanguard FTSE Emerging Markets ETF for exposure to Asian and emerging markets, despite the S&P 500's historical outperformance over the last decade.
Expense Ratios: Both Vanguard ETFs have a low expense ratio of 0.07%, making them cost-effective options for investors looking to diversify into international equities.
Caution on Predictions: The author expresses skepticism about Goldman Sachs' forecasts, citing past inaccuracies and emphasizing a preference for maintaining a larger portion of investment in U.S. stocks, particularly the S&P 500, due to its consistent long-term performance.
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Analyst Views on MUFG
About MUFG
Mitsubishi UFJ Financial Group Inc is a Japan-based company engaged in financial business. It operates through eight business segments. Retail & Digital Business Group provides financial services to individual customers and corporations. Commercial Banking & Wealth Management Business Group provides financial services to corporations and wealth management clients. Japanese Corporate & Investment Banking Business Group provides financial services to large Japanese corporations. Global Commercial Banking Business Group provides financial services to individuals, mid-sized enterprises, and other enterprises. Asset Management & Investor Services Business Group provides asset management, asset administration, and pension services. Global Corporate & Investment Banking Business Group provides financial services to large non-Japanese corporations. Global Markets Business Group provides foreign exchange, funding and other services. It also operates The Other segment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Participation Capability: To qualify, MUSA had to demonstrate substantial market-making capabilities and back-office support for expected trading volumes, which not only boosts its market credibility but may also attract more clients and investors.
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- Global Network Advantage: MUFG operates approximately 2,000 locations in over 40 countries, and MUSA's appointment will help leverage this global network to provide more efficient market services, further driving its strategic positioning in international finance.
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- Investment Appeal: Japan is becoming an attractive destination for investment due to improving business conditions.
- Focus on Profits: Companies are increasingly prioritizing profits and returning cash to shareholders through dividends and buybacks.
- Impact of Currency: A weaker yen is contributing to enhanced earnings for exporters.
- Overall Economic Outlook: The combination of these factors is creating a more favorable environment for investors in Japan.
See More
DORAL RENEWABLES: MUFG LEADS DEBT SYNDICATE INCLUDING SANTANDER, HSBC, ALLY, AND IDB
Partnership Announcement: Doral Renewables has been appointed as the lead arranger for a financing deal involving multiple partners including Santander, HSBC, and others.
Debt Providers Involved: The arrangement includes a syndicate of debt providers, indicating a collaborative effort to support renewable energy projects.
See More
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- Increased Market Volatility: As the U.S.-Iran conflict enters its 18th day, volatility in U.S. markets has intensified, with key indices and multiple sectors experiencing steep declines, pushing many stocks into oversold territory and reflecting strong selling pressure.
- Oversold Stocks Identified: Based on momentum indicators, several financial stocks are identified as oversold, including Mitsubishi UFJ Financial Group (MUFG) with a Relative Strength Index (RSI) of 30 and a 15-day decline of -9.18%, and Citizens Financial Group (CFG) with an RSI of 30 and a -8.92% deviation, indicating significant price pressure.
- Short-Term Recovery Potential: Despite the current market pressures, if company fundamentals remain intact, this oversold condition could create opportunities for short-term recoveries, prompting investors to focus on fundamentally strong companies to capitalize on potential rebounds.
- Sector Impact Analysis: The financial sector is particularly affected, with companies like Synchrony Financial (SYF) and The PNC Financial Services Group (PNC) also showing RSIs below 30, indicating weakened market confidence in these stocks, which may require time to recover.
See More
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- Tariff Impact Analysis: Numerous studies indicate that Trump's tariff policies have imposed most costs on U.S. businesses and consumers, and despite the Supreme Court striking down some duties, Trump has replaced them with a 10% global tariff, exacerbating economic uncertainty.
- Investor Shift Trend: Due to uncertainty about economic impacts, some investors have moved money from U.S. stocks to international markets, resulting in the S&P 500 trading sideways this year while the Vanguard FTSE Pacific ETF rose by 18% and the Vanguard FTSE Developed Markets ETF increased by 11%.
- ETF Performance Comparison: The Vanguard FTSE Pacific ETF tracks about 2,300 Asia-Pacific companies and has outperformed the S&P 500 by nearly 18 percentage points year-to-date, primarily due to strong performances from Samsung and SK Hynix, despite lagging by about 150 percentage points over the past decade.
- Market Outlook: While the Vanguard FTSE Developed Markets ETF has outperformed the S&P 500 by nearly 11 percentage points year-to-date, it has not performed as well as the Vanguard FTSE Pacific ETF due to less exposure to chip manufacturers, indicating potential challenges ahead.
See More
U.S. Stock Market Underperforms as International Markets Surge
- International Market Surge: The Vanguard FTSE Pacific ETF has risen 18% year-to-date, primarily benefiting from strong performances in stocks from Japan, South Korea, and Australia, indicating increased investor confidence in international markets, which may lead to capital outflows from the U.S.
- Economic Concerns in the U.S.: Experts widely believe that President Trump's tariff policies will negatively impact the U.S. economy, causing businesses and consumers to bear most of the costs, thereby exacerbating market uncertainty and affecting investor confidence.
- Surge in Memory Chip Demand: The performance of major memory chip manufacturers like Samsung and SK Hynix, driven by unprecedented demand for AI infrastructure, has propelled the Vanguard FTSE Pacific ETF's gains, although cyclical fluctuations in the memory industry may pose future challenges.
- Significant Fee Ratio Advantage: The Vanguard FTSE Pacific ETF boasts an expense ratio of 0.07%, significantly lower than the average 0.68% for similar funds, making it an attractive option for investors seeking exposure to Asia-Pacific stocks, despite its underperformance compared to the S&P 500 over the past decade.
See More
MUFG's MUSA Designated as Primary Dealer by New York Fed
- Primary Dealer Appointment: MUFG's broker-dealer MUSA has been designated as a Primary Dealer by the New York Fed, marking its critical role in the U.S. financial market and expected to enhance its influence in the Treasury market.
- Market Participation Capability: To qualify, MUSA had to demonstrate substantial market-making capabilities and back-office support for expected trading volumes, which not only boosts its market credibility but may also attract more clients and investors.
- Historical Commitment: With over 140 years of investment in the U.S., MUFG's designation as a Primary Dealer further solidifies its long-term commitment to the U.S. market, likely enhancing its competitiveness in the global financial landscape.
- Global Network Advantage: MUFG operates approximately 2,000 locations in over 40 countries, and MUSA's appointment will help leverage this global network to provide more efficient market services, further driving its strategic positioning in international finance.
See More
