5 Best Low Risk Index Funds to Buy

4. Vanguard Total Intl Stock Idx Fund (MUTF:VXUS)

While US stocks have outperformed international stocks over the past decade, data shows that if we zoom out, international stocks stand out as outperformers. Data from BlackRock, Inc. (NYSE:BLK) shows that international stocks have outperforms U.S. stocks during nearly half of all time periods over the last 50 years.

“With lower returns forecasted for U.S. stocks over the coming years, international stocks may be primed to outperform. Historically, international stocks outperformed 96% of the time when U.S. stocks returned less than 6% and 100% of the time when U.S. stocks returned less than 4%,” a report from BlackRock said.

In this backdrop, having exposure to international stocks via Vanguard Total Intl Stock Idx Fund (MUTF:VXUS)’s total international stock index fund would make sense for investors looking to hedge against risks in the domestic market. Over the past five years the fund has gained about 18%.