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VXUS: The Dollar's Rally Hurts Ex-USA Stocks, Bullish Seasonals On Deck

The US Dollar Index rose eight consecutive weeks heading into mid-September, the longest winning streak since 2015. After basing ahead of the Q2 earnings season along with interest rates, financial conditions have tightened somewhat, pressuring lower-quality firms and their stock prices. Indeed, many ex-US names have struggled since late July. With a rising greenback, foreign stocks have underperformed their domestic peers. The relative performance chart below highlights that the Vanguard Total International Stock Index Fund ETF (NASDAQ:VXUS), compared to the Vanguard Total Stock Market Index ETF (VTI), is now back toward all-time relative lows as investors continue to shun an overweight to overseas equities.

seekingalpha.com     Sep 11, 2023