This ETF offers a defensive way to diversify beyond U.S. stocks

This ETF offers a defensive way to diversify beyond U.S. stocks. Portfolio manager Richard Orrell highlighted the Vanguard FTSE Developed ex North America High Dividend Yield Index ETF as a way to reduce U.S. market concentration. The ETF provides exposure to high-dividend-paying companies in developed markets outside North America. Orrell views international dividend stocks as a defensive component that can diversify returns when U.S. market leadership weakens. Research into historical 'lost decades' for U.S. equities supports allocating to international markets ahead of potential leadership shifts. The ETF allows investors to gain diversified exposure to G7 and other developed markets while benefiting from dividend yield as a performance factor.