Prediction: This Overlooked ETF Could Be the Smartest Buy of 2026
International stocks have been outperforming the S&P 500 for the past 18 months. It's unlikely the momentum is over.
Overview
The Vanguard S&P 500 ETF is up 100% since the beginning of 2023. The Vanguard Information Technology ETF is up 191%. Both have managed double-digit returns in each of the past three calendar years and are on pace for another in 2026.
With those kinds of returns from the largest and most familiar U.S. stocks, it would be understandable if investors didn't look anywhere else for equities in their portfolios. But if they did that, they would miss the fact that international stocks have been outperforming the S&P 500 lately. And by a pretty big margin.
Details
Since the beginning of 2025, the iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) has returned 50% compared to a 27% return for the Vanguard S&P 500 ETF over the same time frame.
Source
Originally published at www.fool.com.