VTIAX outperforms US stocks in 2026, reversing a decade of underperformance.

Vanguard's Total International Stock Index Fund (VTIAX) has surged in 2026, gaining 16.46% year-to-date compared to 13.89% for the US-focused Vanguard Total Stock Market ETF (VTI). This marks a reversal after a decade where international stocks lagged behind US equities, largely due to the tech-driven S&P 500. VTIAX offers broad global exposure outside the US, including developed and emerging markets, with less concentration risk and higher dividend yields. Long-term investors seeking diversification and value may find VTIAX attractive, especially within tax-advantaged accounts, while those chasing short-term gains might prefer other options.