New research from Bank of America (BAC 4.98%) shows that international stocks might be poised to outperform American equities. According to Bloomberg reporting, a new BofA report showed that international developed market stock funds have received $104 billion of new investment inflows so far this year, while U.S. stock funds have only received $25 billion.
BofA analyst Michael Hartnett calls this trend the “anything but dollar” trade, where investors are seeking opportunities in other international markets away from a weaker U.S. dollar. During the past year, the S&P 500 index and the tech-heavy Nasdaq-100 index have been strongly outperformed by European, Pacific, and emerging market stock index ETFs.
International stock markets are benefiting from higher demand for commodities and technologies related to the artificial intelligence (AI) industry, such as rare-earth minerals and semiconductors. The shift toward international stocks might also be related to recent changes in American trade policy and uncertainty about U.S. tariffs.
If you want to get in on the recent shift toward international stocks, here’s a stock ETF that offers a good way to do it.
How to invest in international stocks
Image source: Getty Images.
One of the easiest ways to invest in international stocks as an American investor is to buy the Vanguard Total International Stock ETF (VXUS 0.18%). This exchange-traded fund lets you own 8,691 international stocks in countries like Japan, the United Kingdom, China, Canada, Taiwan, France, and more. And all for a low expense ratio of 0.05%.
Instead of trying to pick which countries will experience stock market growth, this fund lets you own a wide range of the global economy beyond U.S. borders. The ETF’s holdings include European stocks (37.9% of the fund), Pacific stocks (26.4%), and Emerging Markets (26.6%), along with North America (7.8%) and other parts of the world.
There’s no guarantee that international stocks will keep rising. But so far in 2026, the Vanguard Total International Stock ETF is up almost 12%, strongly outperforming the S&P 500 index and the Nasdaq-100.

Vanguard Total International Stock ETF
Today’s Change
(-0.18%) $-0.15
Current Price
$83.81
Key Data Points
Day’s Range
$83.60 – $84.15
52wk Range
$54.98 – $84.28
Volume
10M
There’s no perfect way to protect your stock investments from a possible downturn. But if you are skeptical about the future of AI stocks, want to protect your savings against a weakening dollar, or just want to diversify your portfolio into other parts of the world, this international stock fund could be a low-cost way to use those strategies.
Bank of America is an advertising partner of Motley Fool Money. Ben Gran has positions in Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.


















