1 No-Brainer Vanguard ETF to Buy If You Think U.S. Stocks Are Overvalued

By Leo Sun – Feb 12, 2026 at 2:50PM ESTKey PointsThe S&P 500 looks historically expensive.It might be smarter to invest in a massive international ETF.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: VXUSVanguard Total International Stock ETFToday's Changeangle-down(-1.04%) $0.86Current Price$82.13Price as of February 12, 2026 at 3:59 PM ETVXUS is an easy way to gain exposure to overseas markets.The S&P 500 has gotten off to a shaky start this year, but it's still up 75% over the past five years and looks historically expensive at 30 times earnings. Moreover, most of that rally was driven by a handful of mega-cap tech stocks, such as Nvidia, Microsoft, and Apple, rather than a broader range of stocks. So if you think U.S. stocks are getting overvalued at these levels, it probably isn't the best time to invest in the popular Vanguard S&P 500 ETF (VOO 1.54%). However, it might be the perfect time to invest in the Vanguard Total International Stock ETF (VXUS 1.04%), which offers broad exposure to overseas markets. Image source: Getty Images. Why is it the right time to buy VXUS? VXUS holds a basket of 8,646 stocks and passively tracks the FTSE Global All Cap ex US Index, with a low expense ratio of 0.05%. It allocates 26.8% of its portfolio to emerging markets, 38.2% to Europe, 25.6% to Asia-Pacific, 8.1% to North America, and the rest to other regions. The only three stocks that account for more than 1% of its portfolio are TSMC, Tencent, and ASML. VXUS has already rallied 9% year-to-date, while the S&P 500 has stayed flat. It could continue rising as more investors diversify their portfolios away from the overheated U.S. market.Read NextFeb 8, 2026 •By Adé HennisHow Do These Two Top International ETFs Stack Up Against Each Other?Feb 7, 2026 •By Jake LerchEEM vs. VXUS: Should Investors Favor Emerging Markets Upside or Broad International Stability?Feb 7, 2026 •By Sara AppinoInternational ETFs: VXUS Chases Global Growth While IEFA Prioritizes PredictabilityFeb 5, 2026 •By Ben GranThis Global ETF Could Help Protect You From the "Sell America" TradeFeb 3, 2026 •By Cory RenauerThe Vanguard Total International Stock ETF (VXUS) Offers Broader Global Exposure Than the iShares MSCI Emerging Markets ETF (EEM)Feb 3, 2026 •By David Dierking1 No-Brainer Vanguard ETF to Buy if You Think U.S.

Stocks Are OvervaluedAbout the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedVanguard Total International Stock ETFNASDAQ: VXUS$82.13 (1.04%) $0.86MicrosoftNASDAQ: MSFT$401.84 (0.63%) $2.53AppleNASDAQ: AAPL$261.82 (4.97%) $13.68Taiwan Semiconductor ManufacturingNYSE: TSM$368.28 (1.55%) $5.81NvidiaNASDAQ: NVDA$186.94 (1.64%) $3.11Vanguard S&P 500 ETFNYSEMKT: VOO$626.57 (1.54%) $9.78TencentOTC: TCEHY$67.37 (3.06%) $2.13ASMLNASDAQ: ASML$1408.37 (1.90%) $27.26*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.