This Global ETF Is Beating the S&P 500 in 2026 -- but There's 1 ETF That I Like Better
Written by Ben Gran for The Motley Fool -> The Vanguard International High Dividend Yield ETF and the iShares Core MSCI Total International Stock ETF have outperformed the S&P 500 index in the past year. The Vanguard fund has outperformed the iShares fund for the past 10 years,
The Vanguard International High Dividend Yield ETF and the iShares Core MSCI Total International Stock ETF have outperformed the S&P 500 index in the past year.
The Vanguard fund has outperformed the iShares fund for the past 10 years, with average annual returns of 10.73%.
The iShares international ETF is more diversified, with 4,340 stock holdings.
Many Americans might not realize it with all the excitement around artificial intelligence (AI) growth in the U.S. tech sector, but America's stock market is not the only place to invest. International stocks have also been strong performers recently. Let's look at two low-cost international stock ETFs that have beaten the S&P 500 index year to date and for the past year.
The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) has delivered a total return of about 30.3% in the past year, compared to 24.3% for the S&P 500. The iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) has delivered a slightly lower total return of about 28.7% in the past year.
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Even though it has underperformed the Vanguard fund, this iShares international ETF might be a better buy for long-term investors. Let's look at a few reasons why.
Both international ETFs offer low fees (they charge the same low expense ratio of 0.07%) and broad diversification; one fund owns 1,582 stocks while the other holds an even broader portfolio of 4,340 stocks.
