Vanguard’s international stock ETF rises 10% year-to-date, surpassing the S&P 500 ETF’s 8% gain amid dollar weakness and non-U.S. earnings growth.
Vanguard Total International Stock ETF (VXUS) has gained 10% year-to-date in 2026, outpacing the Vanguard S&P 500 ETF (VOO), which rose 8%. This marks the first meaningful lead for VXUS since 2021, driven by a weaker U.S. dollar and improving earnings outside the U.S.
Over the past decade, VOO returned 313.8% compared to VXUS’s 145%, reflecting strong U.S. technology sector performance and dollar strength. However, recent trends show Vanguard FTSE Developed Markets ETF (VEA) up 11% YTD, led by Japanese corporate reforms and European industrial recovery, while Vanguard FTSE Emerging Markets ETF (VWO) rose 8%.
Currency fluctuations remain a risk, as dollar strength could reverse international gains. Emerging markets lack the technology concentration that has powered U.S. outperformance, but diversification benefits are now materializing for investors.