Key Points
Everywhere you look, you can find people recommending investing in the S&P 500 via low-fee index funds such as the Vanguard S&P 500 ETF (NYSEMKT: VOO). It’s not the only solid investment you might make, though.
You might also want to look into the iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) — which has actually been delivering a superior performance so far in 2026.
Meet the iShares Core MSCI Total International Stock ETF
The iShares Core MSCI Total International Stock ETF is an exchange-traded fund (ETF) — a fund that trades like a stock, making it easy to invest in via any good brokerage.
It’s also an index fund. Index funds are a great investment option for most people, often with very low fees. This ETF has an expense ratio of 0.07%, meaning it will charge you $7 annually for every $10,000 invested in the fund. It tracks the MSCI ACWI ex USA Investable Market index, which is focused on small-, mid-, and large-cap stocks from international emerging and developed markets. The ETF recently held about 4,300 stocks, with very little turnover.
The table below shows how the ETF has performed lately. I’m including the Vanguard S&P 500 ETF’s performance as well for comparison.
Fund
Year to date
3-Year Avg. Annual Return
5-Year Avg. Annual Return
10-Year Avg. Annual Return
iShares Core MSCI Total International Stock ETF
13.46%
18.89%
8.85%
9.88%
Vanguard S&P 500 ETF
10.81%
20.94%
13.17%
15.26%
As you can see, the international ETF has outperformed the S&P 500 year to date. You’ll also see that it has lagged the S&P 500 over many other periods. It’s actually kind of hard to outperform the S&P 500 in recent years, as about 39% of its value is in huge, powerful growers such as Nvidia, Apple, Microsoft, and Amazon.
Should you invest in the iShares Core MSCI Total International Stock ETF?
It’s generally a good idea not to base investments on past performance. The iShares Core MSCI Total International Stock ETF may well outperform the S&P 500 in many years to come. Here are some reasons to consider it for your portfolio.
For starters, it’s focused on countries outside America. Many of us have much of our assets invested domestically, so diversifying internationally can be a good idea, potentially protecting your assets to some degree during a major U.S. stock market crash.
Here are the iShares Core MSCI Total International Stock ETF’s recent top holdings:
Stock
Weight in ETF
Taiwan Semiconductor Manufacturing
4.37%
Samsung Electronics
2.12%
SK Hynix
1.86%
ASML Holding
1.57%
Tencent Holdings
0.85%
HSBC Holdings
0.78%
Roche Holding
0.69%
Royal Bank of Canada
0.68%
AstraZeneca
0.68%
Novartis
0.68%
These are the big, heavy hitters of Asia, Europe (and Canada)! They, and the rest of the ETF’s holdings, together offer a dividend yield of 2.9%, vs. the S&P 500’s 1.1%. That alone is a big difference worth appreciating.
Give this ETF — or other international ETFs — some consideration, as they may serve you and your portfolio well.
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HSBC Holdings is an advertising partner of Motley Fool Money. Selena Maranjian has positions in ASML, Amazon, Apple, HSBC Holdings, Microsoft, Novartis, Nvidia, Roche Holding AG, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Amazon, Apple, AstraZeneca Plc, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and Vanguard S&P 500 ETF. The Motley Fool recommends HSBC Holdings and Roche Holding AG. The Motley Fool has a disclosure policy.
