Quick Read Vanguard Total International Stock ETF (VXUS) returned 38.4% over the past year. VXUS outpaced VTI’s 15.0%. VXUS holds $606.2B in assets with exposure to financials and energy through Royal Bank of Canada and Enbridge. VXUS gained 51.8% over five years compared to VTI’s 66.4%. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. If you own U.S. stocks, you've likely questioned whether interna ...

Core Insights - Vanguard Total International Stock Index Fund ETF Shares (VXUS) delivered a 29% return through mid-December 2025, outperforming the S&P 500's 15% gain, highlighting the potential of international equities [2][6] - The macro environment favored international equities, with significant earnings growth outside the U.S., particularly in sectors like Canadian financials and Asian technology [3] - Currency fluctuations had mixed effects, with the Japanese yen weakening and the British pound strengthening, yet VXUS's performance was driven by business fundamentals rather than exchange rates [4] Performance Metrics - VXUS achieved a 21% return compared to 17.7% for the S&P 500 through mid-December 2025 [6] - The largest holding, Royal Bank of Canada, reported a 29% year-over-year earnings growth [6] - Forward price-to-earnings ratios for MSCI EAFE markets increased from approximately 12x to 14x during 2025, contributing to returns [5][6] Market Dynamics - Valuation compression played a role, as international stocks were trading at significant discounts to U.S. equities at the start of 2025, leading to multiple expansion throughout the year [5] - The macroeconomic environment included synchronized global growth and easing monetary policies outside the U.S., benefiting various sectors [3] Future Considerations - Interest rate policy divergence is expected to influence international returns, with potential dollar weakening if the Federal Reserve maintains higher rates while other central banks ease [8]

Core Insights - Vanguard Total International Stock Index Fund ETF Shares (NYSEARCA: VXUS) has achieved a return of 29% through mid-December 2025, significantly outperforming the S&P 500, which recorded a 15% gain [1] Performance Comparison - The performance of VXUS at 29% contrasts sharply with the S&P 500's 15% return, highlighting the potential benefits of diversifying investments beyond domestic equities [1]