VXUS: Why Reddit Investors Are Piling Into International ETFs Amid Dollar Weakness
The US dollar (DXY) fell 9.4% in 2025, creating a structural tailwind for international equity ETFs. VXUS (Vanguard Total International Stock ETF) is up +9.7% YTD as of April 2026, outperforming US benchmarks.
Key data: VXUS AUM $132B, expense ratio 0.05%, 8,862 holdings. Competitors IXUS (+9.79%, $55.47B) and SPDW (+8.58%, $35.65B, developed-only) are close but differ on EM exposure. DXY currently 98.51, down from 109 in early 2025.
The Bogleheads thesis: US equity outperformance since 2009 relied heavily on valuation expansion and dollar strength. Neither tailwind is poised to repeat. Vanguard recommends a minimum 20% international allocation.
My read: With DXY capped near 99, the structural case for gradual VXUS allocation holds unless DXY recaptures 105 (mid-2025 levels).
For the full analysis in Korean, visit Snakestock
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