Vanguard Says: International Stocks Could Beat the U.S. for Years
The Motley Fool
by newsfeedback@fool.com (Ben Gran)February 22, 2026
AI-Generated Deep Dive Summary
Vanguard's latest research suggests that international stocks may outpace U.S. markets over the next decade, offering more promising investment opportunities. While the S&P 500 and Nasdaq-100 have shown lackluster performance in 2026, with year-to-date returns of -0.03% and -2.2%, respectively, international markets have demonstrated significant growth. The Vanguard Total International Stock ETF (VXUS) has surged 9% year-to-date and an impressive 31% over the past year, far outperforming U.S. benchmarks.
This strong performance reflects broader global economic trends. Emerging markets, particularly in Asia and Europe, are benefiting from diversification opportunities and robust corporate earnings. Additionally, factors such as weaker U.S. dollar strength have made international investments more attractive for foreign investors, contributing to the rally in non-U.S. stocks. Vanguard's outlook underscores the importance of diversification in a rapidly evolving global economy.
For investors, this shift highlights the potential rewards of expanding beyond traditional U.S.-centric portfolios. International markets offer exposure to high-growth regions and industries that may not be as prevalent in American markets. This trend aligns with growing interest in global investing, driven by factors like economic recovery in emerging economies and corporate innovation across diverse geographies.
As Vanguard's research indicates, the long-term trajectory of international stocks could redefine market dynamics, offering investors a pathway to higher returns and reduced risk through diversification. This strategic shift underscores the evolving landscape of global finance and the need for investors to consider opportunities beyond their home markets.
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Originally published on The Motley Fool on 2/22/2026