--- title: "Are International Markets Worth Investing In for U.S. Investors?" type: "News" locale: "en" url: "https://longbridge.com/en/news/284246142.md" description: "The article discusses the potential for U.S. investors to diversify their portfolios by allocating 5% to international markets, specifically through the Vanguard Total International Stock ETF. While the U.S. economy remains strong, with the S&P 500 index showing significant gains, concerns about high valuations and geopolitical tensions suggest that international exposure could be beneficial. The ETF offers access to leading foreign companies, providing a geographical diversification strategy. However, alternative investment opportunities are also highlighted, with recommendations for stocks that may yield higher returns." datetime: "2026-04-27T16:01:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284246142.md) - [en](https://longbridge.com/en/news/284246142.md) - [zh-HK](https://longbridge.com/zh-HK/news/284246142.md) --- # Are International Markets Worth Investing In for U.S. Investors? ## Key Points - Given the American economy’s dominance, it’s hard to make a case for betting against the U.S. - The S&P 500 index’s monster rise in the past decade has driven investor fears about the market’s current valuation. - It makes sense to allocate 5% of a portfolio to the Vanguard Total International Stock ETF. - 10 stocks we like better than Vanguard Total International Stock ETF › It might go without saying that investing in the stock market can lead to long-term wealth creation. An important strategy to ensure lasting success, which might sometimes be overlooked, is to build a diversified portfolio. Of course, this involves picking businesses that operate in different industries, sell different products, and cater to different end customers. However, diversification from a geographical perspective is also something to consider. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ Is it time for U.S. investors to seriously consider allocating capital to international markets? Here's the bear and bull case for this strategy. Image source: Getty Images. ## It has been a bad idea to bet against the U.S. Warren Buffett, who compounded **Berkshire Hathaway**'s share price at an exceptional annualized rate of nearly 20% for six decades, understands where the most promising opportunities lie. "Never bet against America," the Oracle of Omaha wrote in the 2021 shareholder letter. The U.S. has the biggest economy in the world, a culture of entrepreneurship and ingenuity, strong property rights, and robust capital markets to facilitate ongoing growth. These factors feed on themselves to create a positive feedback loop, supporting sustainable progress in the future. For investors, owning the **S&P 500** index has been a fantastic move, as the benchmark has generated a total return of 305% in the past decade (as of April 23). These gains have been driven by the "Magnificent Seven" stocks, which have become some of the most dominant companies we've ever seen. From a societal perspective, they're also historically significant, given that their products and services impact technological trends on a global level. It's also difficult not to come away impressed by the powerful position America has in other areas, like financial services, defense, energy, entertainment, and pharmaceuticals. ## Geographic diversification makes sense in the current environment One of the main reasons to consider international exposure is the U.S. stock market's valuation, as the S&P 500 index has only been more expensive during the dot-com period. This doesn't mean that poor returns are a foregone conclusion. But it might suggest that performance in the future won't resemble what was achieved in the past. And with rising geopolitical tension, aggressive U.S. trade tactics, massive federal debt, and countries wanting to keep artificial intelligence progress within their own borders, maybe America won't be the main attraction for capital as it has been historically. This makes me believe that it's smart for U.S. investors to allocate 5% of their portfolios, still a relatively small share, to the **Vanguard Total International Stock ETF** (NASDAQ: VXUS). At a low expense ratio of 0.05%, this investment vehicle provides exposure to leading foreign companies, like **Taiwan Semiconductor Manufacturing**, **Samsung Electronics** and **ASML Holding**, which are the three top holdings. This ETF offers a way for investors to diversify from a geographical perspective. ## Should you buy stock in Vanguard Total International Stock ETF right now? Before you buy stock in Vanguard Total International Stock ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Vanguard Total International Stock ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $498,522**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,276,807**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of April 27, 2026._ _Neil Patel has positions in Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends ASML, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [VXUS.US](https://longbridge.com/en/quote/VXUS.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [BRK.A.US](https://longbridge.com/en/quote/BRK.A.US.md) - [BRK.B.US](https://longbridge.com/en/quote/BRK.B.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [ASML.US](https://longbridge.com/en/quote/ASML.US.md) - [ASME.DE](https://longbridge.com/en/quote/ASME.DE.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [VTI vs. VOO — Which Vanguard ETF Should You Own in 2026?](https://longbridge.com/en/news/287079454.md) - [Retirees: Buy this ETF for long-term stability and high dividends](https://longbridge.com/en/news/286943591.md) - [ETF strategies shift as volatility and rate bets rise](https://longbridge.com/en/news/286538219.md) - [Photonics ETF surges despite questions over pure-play status](https://longbridge.com/en/news/286335129.md) - [European Undervalued Small Caps With Insider Action For May 2026](https://longbridge.com/en/news/286721352.md)