International stocks pummelled the S&P 500 with 32% returns in 2025. What to know before adding them to your portfolio

For the first time since 2022, international stocks blew past the U.S. market. In 2025, the MSCI EAFE Index, which tracks stocks in developed markets outside the U.S. and Canada, returned roughly 32%, while the MSCI Emerging Markets Index climbed about 34%. Both easily topped the S&P 500, which represents the top 500 U.S. companies, as it finished the year with gains of nearly 18%. Must Read After years of U.S. domination, especially in big tech, this deep shift may have investors wondering if it’s tim ...