Tariffs & Troubles: A Wanderer’s Funds

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A contemplative scene reflecting economic uncertainty.

Now, I’ve seen a good many things in my time—riverboats sinkin’, fortunes risin’ and fallin’ quicker than a gambler’s luck, and politicians makin’ promises they wouldn’t keep to their own mothers. But this here tariff business… well, it’s a peculiar sort of trouble. President Trump, bless his ambitious heart, decided to slap duties on everything that moved, and wouldn’t you know it, it seems the costs have landed right where they usually do—on the backs of folks tryin’ to earn an honest livin’. The Supreme Court gave a few of these duties a swift kick, but the gentleman wasn’t deterred, replacing them with a grand, sweeping 10% tariff on near everything. A fella could almost admire the sheer audacity of it.

It’s got investors twitchy, mind you. They’re startin’ to think twice about keepin’ all their eggs in the American basket, and movin’ a bit of their coin over to foreign lands. And that, my friends, has caused a bit of a stir on the exchanges. While the S&P 500 has been mostly dancin’ in place this year, two funds have been showin’ a bit more pep in their step: the Vanguard FTSE Pacific ETF and the Vanguard FTSE Developed Markets ETF. The Pacific ETF has climbed a respectable 18%, and the Developed Markets one a solid 11%.

Now, don’t go thinkin’ these funds are some sort of magic elixir. They ain’t exactly trounced the S&P 500 over the last ten years. But if this tariff business continues to stir up uncertainty, they might just keep on outperforming. It’s a curious thing, how fear and uncertainty can sometimes create opportunity, even for those who’d rather be fishin’.

1. Vanguard FTSE Pacific ETF

This here fund is a bit like a seasoned traveler, wanderin’ through the markets of Asia and the Pacific. It holds around 2,300 companies, mostly in Japan, South Korea, and Australia. It’s got a fondness for industrials (about 20%), financials (another 20%), and things folks like to spend their money on (15%).

The biggest holdings are:

  1. Samsung Electronics: 4.6%
  2. SK Hynix: 3%
  3. Toyota Motor: 2.1%
  4. Mitsubishi Financial Group: 1.7%
  5. Commonwealth Bank of Australia: 1.5%

This year, it’s outpaced the S&P 500 by a good eighteen percentage points. The secret? A couple of chipmakers, Samsung and SK Hynix. Seems there’s a mighty demand for artificial intelligence these days, and that’s sent the price of memory chips sky high. The International Data Corp. says this shortage could last well into 2027. But, as any old-timer will tell you, what goes up must come down. The chip business is cyclical, and when those prices fall, this fund might find itself laggin’ behind.

It costs a mere 0.07% to hold this fund – that’s seven dollars for every ten thousand you invest. Most similar funds charge nearly ten times that amount. All things considered, it’s a sensible choice for anyone lookin’ to dip their toes into the markets of the Asia-Pacific region.

2. Vanguard FTSE Developed Markets ETF

This fund is a bit more of a cosmopolitan sort, spreadin’ its investments across developed markets outside the United States. It favors Japan, the United Kingdom, and Canada. Like the Pacific fund, it’s got a fondness for financials (24%), industrials (18%), and consumer goods (11%).

Its biggest holdings are:

  1. ASML: 1.8%
  2. Samsung Electronics: 1.7%
  3. SK Hynix: 1.1%
  4. Roche Holding: 1%
  5. HSBC Holdings: 1%

This year, it’s beaten the S&P 500 by nearly 11 percentage points, but over the last decade, it’s trailed behind by a considerable margin. It’s been performin’ about as well as the Pacific fund, mostly because of its exposure to Samsung and SK Hynix. But it hasn’t done quite as well, because it doesn’t hold as much of those chipmakers.

In most years, its greater diversity has been a boon. Between 2021 and 2025, it outperformed the Pacific fund by 19 percentage points, partly because of its even cheaper expense ratio of 0.03%. All things considered, it’s a good choice for investors seekin’ diverse exposure to non-U.S. stocks in stable economies.

Now, I ain’t sayin’ these funds are guaranteed to make you rich. But in a world full of tariffs and uncertainty, they might just offer a bit of shelter from the storm. And sometimes, that’s all a fella can ask for.

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2026-02-26 12:52