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Third Quarter in Non-U.S. Stock Funds: Tariff Tiff Tremors

Non-U.S. strategies lagged U.S.-focused managers again as both the dollar and trade fears increased.

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Non-U.S. equity strategies continued to lag U.S.-focused portfolios in 2018’s third quarter. Emerging markets, such as China and India, were particularly weak, while Latin America staged a comeback and Japan continued to rally.

The  Vanguard Total International Stock Index (VGTSX) rose slightly more than 1% annualized for the quarter through Sept. 27, 2018, but was still down more than 2.5% for the year. Vanguard Emerging Markets Stock Index (VEMAX) fell 1.3% for the quarter to date, adding to an 8.4% loss for the year. In contrast, the Vanguard Total Stock Market Index (VTSAX), a proxy for the U.S. market, jumped 7% in the quarter and 10.6% for the year.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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