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Ben Gran, The Motley Fool
Sun, May 3, 2026 astatine 12:05 PM CDT 4 min read
One of the biggest stories of investing successful 2026 is that planetary stocks are (mostly) beating the U.S. banal market. The Vanguard Total International Stock ETF (NASDAQ: VXUS), which holds much than 8,000 stocks from countries extracurricular the U.S., has gained 7.6% twelvemonth to date. That's amended than the S&P 500 index (which is up lone 4.2%), and astir connected par with the tech-heavy Nasdaq-100 index.
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After much than 15 years erstwhile U.S. tech stocks were immoderate of the champion investments successful the world, is it clip for planetary stocks to instrumentality their spot successful the spotlight? One of the starring concern companies' probe teams says yes. The Vanguard 2026 economical and marketplace outlook predicts that planetary stocks could beryllium a bully bargain for the adjacent respective years -- amended than U.S. tech stocks.
Let's instrumentality a person look astatine this inclination and spot which planetary banal ETF mightiness beryllium the champion prime to outperform the U.S. tech assemblage for years to come.
Vanguard research: planetary stocks are poised to outperform
Major tech companies are spending hundreds of billions of dollars connected artificial quality (AI) capex, which has led immoderate investors to interest that U.S. banal valuations are overstretched. Remember that the U.S. marketplace isn't the lone crippled successful town.
The Vanguard 2026 economical and marketplace outlook projects that "ex-U.S. equities" (international stocks) volition present 4.9%-6.9% mean yearly returns for the adjacent 10 years. Expectations are overmuch little for U.S. stocks, which Vanguard projects to present 4%-5% mean yearly returns.
Vanguard's probe said that erstwhile looking astatine U.S. tech stocks, "risks are increasing amid this exuberance," and "more compelling concern opportunities are emerging elsewhere." The study said that non-U.S. developed-market equities had 1 of the strongest risk-reward profiles for the adjacent 5 to 10 years.
How to bargain planetary stocks
Vanguard's probe didn't urge immoderate circumstantial banal ETFs to acceptable this investing strategy. But if you privation to bargain developed-market stocks from extracurricular the U.S., 1 casual mode to bash that is to put successful the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI). For astir of 2026, this money has outperformed the S&P 500 and the Nasdaq-100.
This planetary ETF gives you vulnerability to 1,597 stocks from developed-market economies -- that includes countries similar Japan, the United Kingdom, Canada, and Switzerland. The stocks successful this money are forecasted to present higher-than-average dividend yields, and the fund's dividend output is 3.64%. If you deliberation U.S. maturation stocks are overpriced, this ETF's terms to net ratio of 13.6 is overmuch cheaper than the 34.95 P/E ratio of the Nasdaq-100.
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