1 Top ETF I Plan to Load Up On in 2026

Core Viewpoint - International stocks are experiencing a resurgence, with ETFs like the iShares Core MSCI Total International Stock ETF (IXUS) outperforming the S&P 500, indicating a potential shift in investment focus for 2026 [1][2]. Group 1: Performance of International Stocks - In 2025, international stocks outperformed domestic stocks for the first time in a long period, with many ex-U.S. ETFs significantly beating the S&P 500 [1]. - The iShares Core MSCI Total International Stock ETF (IXUS) has increased by 7.5% year to date, while the S&P 500 has only gained 1.9% [1]. Group 2: Small Cap Stocks - The resurgence of international stocks includes smaller stocks, with the Avantis International Small Cap Value ETF (AVDV) being highlighted as a top choice for 2026 [2]. - The Avantis ETF has outperformed U.S. small-cap value indices over the past five years, indicating its effectiveness in the small-cap space [3]. Group 3: Fund Characteristics - The Avantis International Small Cap Value ETF is actively managed, which is advantageous in the less efficient small-cap market, particularly for international stocks that receive less attention from U.S. investors [4]. - The fund has a significant geographic allocation, with 32% of its portfolio in Japanese small caps, which are viewed as undervalued and potentially benefiting from Japan's economic policies [5]. - The Avantis ETF has a total asset size of $17 billion and an annual expense ratio of 0.36%, making it a cost-effective option for investors [6].