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The performance of U.S. equity indexes has created a template for investors seeking profitable opportunities. Take, for example, the performance of Vanguard's Vu ETF compared to VTI, which tracks all U.S. stocks. Since its inception in 2007, the Vu ETF has returned a total of 95%, while VTI has delivered an astounding 366%. Such figures illustrate why U.S. equities now account for 62% of global stock market capitalization, even though U.S. GDP represents a mere quarter of global GDP.
Catalysts Behind Strong Market Performance
The unwavering growth and returns in the U.S. stock market can be traced back to several key factors: