In early 2026, US stocks, represented by the Vanguard S&P 500 ETF, have struggled with a year-to-date loss of 3.54%, while international stocks have performed well due to a weaker US dollar and less exposure to volatile US tech. ETFs like Vanguard FTSE Europe (VGK), Vanguard Total International Stock Index (VXUS), and iShares MSCI Japan (EWJ) offer investors broad international exposure and diversification. Despite recent volatility, these ETFs have shown strong returns over the past year. Experts suggest international ETFs should be used for diversification rather than a permanent shift away from US equities, which are expected to rebound due to strong economic policies and investment in the US.
