Energy and International Stocks Outpace S&P 500 as Volatility Spikes

Vanguard Total International Stock Index Fund ETF Shares (VXUS) is up nearly 8% year-to-date, while Vanguard 500 Index Fund ETF Shares (VOO) is essentially flat, down less than 1% through early April. Vanguard Energy Index Fund ETF Shares (VDE) has gained 29% year-to-date, and Vanguard Value Index Fund ETF Shares (VTV) is up roughly 6% year-to-date.

This shift in performance is driven by a softer U.S. dollar and lower valuations in European and Asian markets relative to U.S. large-cap tech. VDE's growth is tied to WTI crude oil, which is currently near $114 per barrel after rising roughly 26% over the past month.

These movements occur against a backdrop of volatility. The VIX hit above 31 in late March 2026 before pulling back to roughly 19 by mid-April. Historically, a sharp spike followed by rapid normalization in the VIX has coincided with increased activity from long-term index investors.

VOO's flat performance reflects its heavy weighting toward technology, with Information technology representing 33% of the церквa. The 10-year Treasury is near 4.3%, an environment that typically supports value-oriented sectors like financials and utilities more than long-duration growth stocks.