Is Spring 2026 the Best Time to Buy VXUS for Global Diversification?

By Leo Sun – Apr 2, 2026 at 10:40AM ESTKey PointsVXUS gives investors instant exposure to thousands of overseas stocks.It trades at a much lower multiple than the S&P 500.Many American investors allocated most of their portfolios to U.S. stocks because they're more familiar with those companies or expect them to outperform their overseas counterparts. However, the S&P 500 looks historically expensive at 28 times earnings, and a growing list of geopolitical conflicts and macroeconomic headwinds could compress that multiple this year. Therefore, it might be the ideal time to increase your exposure to overseas stocks through the Vanguard Total International Stock ETF (VXUS 0.99%), the world's largest global ETF (excluding U.S. stocks) with $636.7 billion in total assets as of the end of February. Let's see why it's one of the easiest ways to diversify your portfolio from the frothy U.S. market. Image source: Getty Images. What does VXUS own? VXUS tracks the FTSE Global All Cap (excluding U.S.) index. It holds 8,703 stocks with a median market capitalization of $52.0 billion and an average earnings growth rate of 15.9%. It trades at just 18 times earnings, making it much cheaper than the S&P 500. Since it's passively managed and simply follows the index, it only charges a low expense ratio of 0.05%. By comparison, actively managed equity ETFs have an average expense ratio of 0.14%. ExpandNASDAQ: VXUSVanguard Total International Stock ETFToday's Change(-0.99%) $-0.77Current Price$77.24Key Data PointsDay's Range$76.10 - $77.8652wk Range$54.98 - $84.28Volume370K VXUS allocates roughly 26% of its portfolio to emerging markets, 37% to Europe, 28% to the Pacific region, 8% to North America, and 1% to the Middle East. It has very little direct exposure to the Iran War, but a lot of its portfolio companies are still indirectly exposed to the conflict. VXUS's top holdings include TSMC (3.4% of the fund), Samsung Electronics (1.6%), ASML (1.3%), and Tencent (0.9%). Unlike U.S. retail investors, who can usually access only some of these companies through U.S.-listed ADRs or over-the-counter (OTC) shares, the fund directly purchases their overseas shares. Why is VXUS an attractive investment? Over the past five years, VXUS delivered a total return of 42%. The Vanguard S&P 500 ETF (VOO 0.02%), which tracks the S&P 500, delivered a total return of 74%. However, past performance never guarantees future gains -- and VXUS could outperform VOO over the next five years as investors revalue U.S. and international stocks. According to the base case of Vanguard's Capital Markets Model (VCMM), overseas (excluding U.S.) stocks could outperform their U.S. counterparts by 2.2% annually from 2023 to 2033. Therefore, if you're worried about U.S. stocks collapsing under the weight of their valuations this year or simply want to increase your overseas exposure, VXUS checks all the right boxes.Read NextApr 1, 2026 •By Stefon WaltersThe Best International ETF to Buy With $1,000 in April 2026Mar 26, 2026 •By Neil PatelHow to Start Investing in the Stock Market Today With $10,000Mar 17, 2026 •By Neil PatelWhat Should Investors Buy Heading Into April 2026?Mar 16, 2026 •By Neil PatelUp 27% in 12 Months, Meet 1 Vanguard ETF That Might Be a No-Brainer Buy in MarchMar 7, 2026 •By Ben Gran"Buy America" or "Bye, America": Why International Stocks Could Be a Good BuyMar 5, 2026 •By Eric TrieOne Global Fund or a Clearer Bet on International Markets? VXUS vs. SPGMAbout 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$77.18(-1.06%)-$0.83Taiwan Semiconductor ManufacturingNYSE: TSM$338.41(-0.90%)-$3.08Vanguard S&P 500 ETFNYSEMKT: VOO$602.16(-0.02%)-$0.14TencentOTC: TCEHY$62.46(-1.64%)-$1.04ASMLNASDAQ: ASML$1,334.43(-1.86%)-$25.33*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.