The One International ETF Most Retirement Portfolios Are Missing Right Now

"VXUS tracks the FTSE Global All Cap ex US Index, which means it owns a slice of essentially every investable stock on the planet outside the United States. The fund holds over 8,000 individual stocks, so no single company moves the needle much."

"VXUS currently yields 2.86%, which is meaningful income for a retirement sleeve, even if it falls short of the 4.23% yield on the 10-year Treasury right now. The difference is that VXUS offers equity upside alongside that income, while Treasuries do not."

"In 2026, VXUS is up 4.2% year to date while the broad U.S. market is down 1.4% - a reversal driven by dollar weakness, cheaper valuations abroad, and a rotation away from U.S. mega-cap tech."

"VXUS has returned 26% over the past year versus 18% for U.S. stocks, a gap wide enough to meaningfully affect a retirement portfolio's total return."

U.S. stocks have dominated global returns, leading to retirement portfolios being heavily weighted towards the U.S. The Vanguard Total International Stock Index Fund ETF Shares (VXUS) offers exposure to international markets, tracking the FTSE Global All Cap ex US Index. VXUS holds over 8,000 stocks, providing diversification. It currently yields 2.86%, offering equity upside alongside income. In 2026, VXUS has outperformed U.S. stocks, returning 4.2% year-to-date compared to a 1.4% decline in the U.S. market, highlighting the importance of international diversification.

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