EL7.AI
StocksUpdated•Originally published 6 April 2026•Updated 8 April 2026•
1 min read

International ETFs Outperform S&P 500 in Early 2026 Market Rotation

Key Facts

1The Vanguard S&P 500 ETF (VOO) has declined by 3.54% year-to-date as of early April 2026.
2US stocks (VOO) returned 29% throughout 2025 before struggling in the first quarter of 2026.
3International ETFs are currently outperforming major US benchmarks in price performance.

Global financial markets are witnessing a significant shift in early 2026 as international exchange-traded funds (ETFs) begin to outperform major US benchmarks. The Vanguard S&P 500 ETF (VOO) has recorded a decline of 3.54% year-to-date as of early April, following a robust 29% return in 2025. Shipping, Energy, Commodities, and Volatility ETFs emerged as the clear winners in March, leading the market's price performance. Analysts identify war risks and supply shocks as the primary drivers for the significant surge in these specific sectors. This rotation highlights a cooling period for the S&P 500 as investors seek value and hedges against geopolitical instability. The trend underscores a growing preference for international diversification and commodity-linked assets amid shifting global dynamics.