Non-US Markets Are Ripping, and These 3 ETFs Are The Best Way To Ride The Boom

Core Viewpoint - Non-US markets have significantly outperformed US equities, prompting investors to reconsider their international exposure strategies as emerging markets and developed international markets show strong performance [3][5][8]. Market Performance - International equities have outperformed US stocks by approximately 15% since November 2024, with a notable gap of 8 percentage points in January 2026 compared to the S&P 500 [3][8]. - The S&P 500 has declined by 1.6% in 2026, while emerging markets have risen sharply, indicating a shift in market dynamics [5]. ETFs Overview - Three ETFs are highlighted as key investment vehicles for gaining international exposure: - iShares Core MSCI Emerging Markets ETF (IEMG): - Holds $148.6 billion in assets with a low expense ratio of 0.09% - Up 7.2% year-to-date and 33% over the past year, with major holdings in Tencent, Samsung, and HDFC Bank [2][9][10]. - Fidelity Fundamental Emerging Markets ETF (FFEM): - Actively managed with a 0.60% expense ratio, focusing on technology and financial sectors - Up 9.8% year-to-date, with Taiwan Semiconductor making up 14% of the portfolio [2][11][12]. - Fidelity International Value Factor ETF (FIVA): - Targets developed international markets with a value tilt, yielding 2.3% and an expense ratio of 0.18% - Up 3.4% year-to-date and 31% over the past year, with holdings in companies like ASML and Nestle [2][13][14]. Investment Considerations - The performance of international equities is driven by structural factors such as a weaker US dollar, attractive valuations, global growth, and increased European defense spending [3][8]. - Investors are advised to consider the trade-offs associated with each ETF, including currency risk and the potential for volatility in emerging markets [15][16].