Vanguard Market ETF Up 22% Over Past Year While International Gains 32%
Vanguard Total Stock Market ETF returned 22% over the past year compared with Vanguard Total International Stock ETF’s 32%, while year-to-date through March 10, 2026, VTI is essentially flat at +0.04% versus VXUS’s 5.92% gain. However, VTI has outpaced international markets over five- and ten-year horizons.
1. One-Year Performance Comparison
Over the 12 months through early March 2026, VTI delivered a 22% total return while the international ETF VXUS surged 32%, driven by stronger earnings growth and valuation expansion in non-U.S. markets. This marks one of the widest annual performance gaps between U.S. and international equities in recent years.
2. Year-to-Date Performance
Through March 10, 2026, VTI has produced a negligible 0.04% gain as U.S. stocks consolidated, whereas VXUS has climbed 5.92% on renewed investor interest in overseas earnings momentum. The differential reflects divergent sector leadership and regional economic rebounds outside the United States.
3. Long-Term Return Analysis
Despite recent outperformance by international stocks, VTI has outpaced VXUS over five- and ten-year periods, underscoring durable U.S. earnings growth and capital returns. Long-term structural advantages in innovation, profit margins and shareholder distributions have driven sustained domestic market leadership.
4. Investor Considerations
Investors weighing VTI versus VXUS must consider currency fluctuations, potential valuation mean reversion abroad and the inconsistent dividend schedule of VXUS. A balanced allocation may mitigate home-country bias, but historical data warn that international diversification has often underperformed over extended horizons.