Andrey Tolkachev / Shutterstock.com
(Andrey Tolkachev / Shutterstock.com)
Quick Read
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Vanguard Total World Stock ETF (VT) is down less than 1% year-to-date in 2026 while the S&P 500 is down 3%, driven by diversified exposure to developed and emerging markets including Canadian banks, European industrials, and Latin American e-commerce beyond the mega-cap US tech stocks that dominate SPY. SPDR S&P 500 ETF (SPY) has historically outperformed VT by 22 percentage points over the past decade, but that advantage is reversing as international markets contribute real returns in 2026.
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US equities have dominated for a decade due to low rates and dollar strength, but VT’s broader geographic allocation is now providing cushion as the S&P 500 declines early in 2026 and currency risk from dollar strength poses a real consideration for international holdings.
The S&P 500 is down 3% year-to-date in…
