Prediction: This Vanguard Index Fund Will Continue to Beat the S&P 500 in 2025

The Trump administration has unnerved investors with its departure from traditional trade policy. The average tax on U.S. imports fell to 2.5% under the previous administration, but the tariffs Trump has imposed or plans to impose would raise that figure to 8.4%, according to the nonpartisan Tax Foundation. That would be the highest level since 1946.Fearing the impact of a trade war on the U.S. economy, investors have rotated away from domestic equities and into international stocks. The three major U.S. market indexes have declined year to date, including a 4% slide in the S&P 500 (SNPINDEX: ^GSPC). Meanwhile, several international indexes have generated robust returns, as detailed below:Importantly, the returns above are shown in local currencies. But the U.S. dollar index has fallen over 4% year to date, meaning U.S. currency has become less valuable versus a basket of foreign currencies. Consequently, the STOXX Europe 50 has advanced 13% year to date as measured in U.S. dollars.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool