1 Magnificent Vanguard ETF I'm Buying Hand Over Fist in 2026

Group 1 - International stocks are expected to outperform U.S. equities in 2025 due to a weaker U.S. dollar and proactive interest rate cuts by other nations' central banks [2] - Retail investors who missed the international stock rally in 2025 may find opportunities in the small-cap segment for 2026 [3] - The Vanguard FTSE All-World ex-US Small-Cap ETF has shown significant performance, up 26.2% year to date, compared to U.S. small-cap funds which are up only 11% and 5% [5] Group 2 - The Vanguard FTSE All-World ex-US Small-Cap ETF trades at 12 times forward earnings, offering value compared to 15 for large-cap equivalents and 27 for large-cap domestic stocks, with faster earnings growth in international small-caps [6] - This ETF provides diversification benefits, with a correlation of just 0.4 to the S&P 500 Growth index, making it a suitable option for investors heavily exposed to domestic technology stocks [7] - The ETF offers broad exposure to an overlooked asset class, enhancing portfolio diversification beyond expectations [8]