2 International ETFs That are Crushing the VOO and are Worth Buying for 2026

"If you haven't thought about diversifying your equity portfolio internationally, perhaps the performance of non-U.S. financial markets might have you looking beyond the S&P 500 for your next big investment. Undoubtedly, the S&P has done just fine, now up over 15%, with a potential move to the 7,000 level in sight if investors can shrug off recent concerns that have made for a rather rocky ride in this fourth and final quarter of 2025."

"Beating the market hasn't been hard in 2025 if you were internationally diversified. Though various international markets (think the ones up more than 50% on the year) have now gotten pricier, closing the valuation gap with the U.S., I do think expanding one's international horizons isn't all too bad an idea, especially if you can take advantage of the individual names that still offer ample value."

"Of course, not everyone's brokerage will have access to a wide range of international markets. And that's where ETFs come into play. Arguably, they're the best (and cheapest) way for American investors to gain exposure to markets that might trade very differently from the S&P 500. Indeed, there's always the risk that international markets start to underperform the U.S. markets again."

U.S. equities have risen strongly, yet non-U.S. financial markets also posted significant gains in 2025, prompting consideration of international diversification. Chasing top-performing ETFs is generally unlikely to be a winning short-term strategy, but long-term investors with little or no international exposure may find value in ex-U.S. ETFs. Several international markets have converged toward U.S. valuations after large rallies, though some individual stocks still offer attractive value. Brokerage access can limit direct purchases of foreign stocks, making ETFs a practical and low-cost route for U.S. investors. There remains risk that international markets could underperform again, so buying on dips and focusing on value and developed non-U.S. markets may be prudent.

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