What Should Investors Buy Heading Into April 2026?

March is halfway over, and there continues to be no shortage of reasons for investors to worry. Whether it's fears of disruption from artificial intelligence, ongoing geopolitical tension, or just general macro uncertainty, investors are thinking about possible moves to make for their portfolios.

As we head into April 2026, what should you be buying?

Image source: Getty Images.

It's time to think outside the U.S.

One of the best ways to ensure long-term investing success is to focus on building a diversified portfolio. Not only does this mean owning companies of different sizes and that operate in different industries, but it also suggests considering various geographies. It's time to think outside the U.S.

In the past decade, the S&P 500 index has generated a total return of 289% (as of March 13), significantly better than its historical annualized average of 10%. There are valid concerns among market participants about the valuation of U.S. stocks these days, driven particularly by the rise of the technology sector. This should force investors to at least examine how to gain more exposure to international businesses, even though betting on the American economy has clearly worked out well in recent memory and could continue being the case.

This exchange-traded fund deserves consideration

Investors should look to buy the Vanguard Total International Stock ETF (NASDAQ: VXUS) as we head into April. In the past year, it has produced a total return of 27% that comes up ahead of the S&P 500's performance.

All 8,703 stocks that this ETF contains are located outside of the U.S., providing a compelling vehicle to immediately give investors broad geographic exposure. Japan, the U.K., China, Canada, and Taiwan are the top five countries in terms of concentration, making up a combined 47% of the entire asset base. Emerging markets in total represent 26% of the portfolio, so investors also get access to these developing countries.

It's also worth understanding sector layouts. Compared to the S&P 500, which has 32.4% of its assets in the technology sector, the Vanguard Total International Stock ETF only has 15.6% exposure to this sector. In fact, financials make up a larger share at 23%.

And the cost is extremely low. The ETF carries an expense ratio of 0.05%. On a hypothetical $10,000 investment, this translates to $5 on a yearly basis. It's hard to complain about that.

Portfolios are optimized to navigate the uncertainty when they are adequately diversified, which means having at least 25 different positions. Buying enough of the Vanguard Total International Stock ETF to build a 4% position seems like a good move.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.