U.S. investors typically have a home bias, favoring U.S. ETFs like VOO and VTI. While international stocks are recommended, many investors avoid them due to underperformance. The case for international investing is stronger now, with value, small-caps, defensive equities, and international stocks leading the market.

The Vanguard Total International Stock ETF (VXUS) tracks the FTSE Global All Cap ex-US Index, offering exposure to over 8,000 stocks in developed and emerging markets outside the U.S. With a low expense ratio of 0.05%, it’s a cost-effective way to invest internationally for potential growth.

Earnings growth forecasts show emerging markets leading with a 17% rate, compared to the U.S.’s 13%. Despite the historical undervaluation of foreign stocks, the potential for growth and value in international markets could make them a compelling option moving forward.

Diversifying with international stocks can reduce portfolio risk and provide a resilient long-term strategy. Considering the growth potential and value in foreign markets, a global stock portfolio may offer advantages over a solely U.S.-based one.

Read more at Yahoo Finance.: How This International ETF Could Complement a U.S.-Heavy Portfolio