Top-Performing International ETFs of 2025

Core Insights - Wall Street faced significant volatility in 2025, while international markets showed stability or growth, driven by trade uncertainties under the Trump administration impacting the U.S. economy more severely than international markets [1] U.S. vs International Market Performance - The Roundhill Magnificent Seven ETF (MAGS) increased by 23.9% in 2025, while the SPDR S&P 500 ETF Trust (SPY) rose by 16.4%. The tech-heavy Invesco QQQ Trust (QQQ) gained approximately 21%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) advanced by 13.5% [4] - International ETFs outperformed U.S. benchmarks, with the Vanguard Tax Managed Fund FTSE Developed Markets ETF (VEA) up 29.6%, iShares Asia 50 ETF (AIA) up about 40%, and iShares MSCI Eurozone ETF (EZU) up 36.2% [5][11] Valuation Comparisons - International markets were generally undervalued compared to U.S. stocks, with the P/E ratio of the iShares MSCI Eurozone ETF (EZU) at 17.68X compared to the Vanguard S&P 500 ETF (VOO) at 28.86X [6] - Other international ETFs like iShares MSCI Japan ETF (EWJ) had a P/E ratio of 16.33X, and iShares China Large-Cap ETF (FXI) traded at 10.69X, indicating lower valuations compared to U.S. counterparts [7] Economic Policies Impacting Performance - The European Central Bank engaged in rate cuts earlier in 2025, while India and China implemented various policy stimuli. In contrast, the U.S. focused on budget cuts and reduced federal expenditures, with the Federal Reserve enacting three rate cuts starting in September [8][9] High-Dividend ETFs Performance - High-dividend global ETFs showed strong returns, with First Trust Developed Markets ex-US AlphaDEX Fund (FDT) up 46%, iShares MSCI Israel ETF (EIS) up 45.1%, and iShares International Select Dividend ETF (IDV) up 42.4% [13][14][15]