New Research Says: The Biggest Gains of AI Won’t Go to AI Stocks. These 2 ETFs Could Be Better Buys.
New Research Says: The Biggest Gains of AI Won’t Go to AI Stocks. These 2 ETFs Could Be Better Buys.
Publish Date: 2026-07-04 13:20:00
Source Domain: www.theglobeandmail.com
Key Points
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Vanguard research from June projects that U.S. value stocks and international developed-market stocks might outperform in the future era of AI-driven productivity.
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The Vanguard Small-Cap Value ETF has delivered a roughly 27% return in the past year.
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The Vanguard International Dividend Appreciation ETF offers a high dividend yield from a mix of financially strong global companies.
Who will be the biggest winners of the artificial intelligence (AI) boom? Some investors believe the AI hyperscalers will win by building AI tools, while other investors are betting on AI pick-and-shovel companies building AI infrastructure and data centers. But what if there were a third choice?
New research from Vanguard is bullish on AI, but not necessarily AI stocks. The investment company’s June outlook projects that the biggest future gains of AI won’t go to the major tech players currently building it. Instead, Vanguard says the best returns from artificial intelligence might go to U.S. value stocks and international stocks in developed markets outside the U.S. That’s because these companies could be in the best position to use AI to make more money and boost productivity and efficiency.
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Vanguard’s research doesn’t recommend any particular stocks or exchange-traded funds (ETFs). But let’s look at two Vanguard ETFs that could fit the investment strategy of buying into the future of AI, but not only AI stocks.
Vanguard Small-Cap Value ETF (VBR): 835 stocks, 22 years of 9.6% annualized returns
The Vanguard Small-Cap Value ETF(NYSEMKT: VBR) offers a diversified portfolio of small-cap stocks that might be poised to grow from AI productivity gains. This fund delivered a 15.9% return through the first half of the year and 27.1% over the past year, outperforming the S&P 500 index. It charges…
