Concentration Risk High as Top Two Stocks Steer U.S. Communication Services ETF Performance

Recent Vanguard research forecasts higher growth for international stocks than for U.S. stocks — for the next 10 years. The Vanguard Total International Stock ETF has outperformed the S&P 500 index and Nasdaq-100 index for the past year.

The S&P 500 experienced sharp swings in 2025 due to shifts in trade policy, AI speculation, and rate cuts, while corporate profits remained resilient. Broader AI adoption and steady economic growth are expected to drive double-digit earnings growth in the S&P 500 in 2026. Tech is expected to dominate earnings growth again next year, but more sectors are projected to contribute.

Rocket Lab stock (NASDAQ: RKLB) has become one of the market’s favorite regret trades. It went public at $11.58, fell to a record low of $3.79 in 2022, and now trades around $84.65, after a long run built on launch execution, defense contracts and a growing backlog.