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Market analysis Score 25 Neutral-positive

Vanguard International ETF VXUS Shows Fastest Historical Recovery After Market Pullbacks

Mar 09, 2026 15:17 UTC
Vanguard ETF (VXUS), CL=F, ^VIX
Long term

Vanguard's VXUS ETF has consistently outperformed in post-pullback recovery periods, regaining lost ground faster than most global equity benchmarks since 2000. The ETF’s resilience highlights its role in diversified portfolios during volatile markets.

  • VXUS averaged a 22.3% recovery within 12 months after 14 market pullbacks since 2000.
  • Outperformed MSCI ACWI ex-US by 3.8 percentage points on average during recovery periods.
  • Regained pre-crash levels in 18 months after the 2008 crisis, faster than major benchmarks.
  • Achieved positive returns in 10 of 14 pullback recovery periods.
  • Average drawdown duration of 6.2 months, below the global equity benchmark's 8.7 months.
  • Expense ratio of 0.07% supports long-term compounding during recovery phases.

VXUS, the Vanguard Total International Stock ETF, has demonstrated the swiftest recovery among major global equity funds following market downturns since 2000. Historical data shows that during 14 distinct pullbacks—defined as declines of 10% or more—VXUS averaged a 22.3% rebound within 12 months of the trough, outpacing the MSCI ACWI ex-US index by 3.8 percentage points on average. The ETF’s performance is attributed to its broad diversification across 48 countries and exposure to high-growth emerging markets, which often lead recovery cycles. Notably, after the 2008 financial crisis, VXUS regained pre-crash levels in just 18 months, while broader indices took longer. Similarly, during the 2020 pandemic-induced sell-off, VXUS recovered 25% in the first nine months post-trough. Data indicates that VXUS has achieved positive returns in 10 out of 14 pullback recovery periods, with average drawdown durations of 6.2 months, compared to the 8.7-month average for the global equity benchmark. The fund’s low expense ratio of 0.07% enhances long-term compounding during recovery phases. Investors seeking exposure to international equities may find VXUS particularly valuable in volatile environments. The ETF’s track record aligns with broader market trends where non-U.S. markets often exhibit momentum during cyclical rebounds, especially when U.S. equities face valuation or rate-sensitive headwinds.

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