Vanguard’s 0.05% International Stock ETF Just Outpaced the S&P 500 for the First Time in Five Years

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• A weaker US dollar against the euro and improving non-US earnings are driving international stocks higher, though currency strength can reverse gains and emerging markets lack the technology concentration that powered US market returns over the past decade.

  60% confidence

• VEA is up 11% YTD driven by Japanese corporate reform and European industrial revival, while VWO is up 8%.

  60% confidence

• VXUS is up about 10% year to date in 2026 while VOO has returned roughly 8%, representing the first meaningful YTD lead for VXUS over the S&P 500 since 2021.

  60% confidence

• The US dollar moved from a 12-month low of $1.198 per euro on January 27, 2026, to roughly $1.16 per euro in mid-May, mechanically compressing the translated value of international earnings for US investors completely separate from underlying foreign business execution.

  60% confidence

• VXUS tracks the FTSE Global All Cap ex US Index, holds more than 8,000 stocks, charges 0.05% in annual expenses, manages roughly $137 billion, and pays a distribution yield near 2.6%.

  60% confidence

• The US trade deficit narrowed to $60.3 billion in March 2026, after expanding to $72.9 billion in December, suggesting a similar economic environment.

  60% confidence

• Over a decade, VXUS returned 145% versus VOO's 313.8%, reflecting concentrated US technology exposure's outperformance and the dollar's traditional strength compressing foreign earnings translations.

  60% confidence

• An unnamed analyst who called NVIDIA in 2010 has named a new top 10 stocks list for 2026 that does not include Vanguard S&P 500 ETF (VOO).

  60% confidence