1 No-Brainer International Stock Fund to Buy Right Now for Less Than $1,000

Core Viewpoint - International stocks have started to outperform U.S. equities, marking a significant shift in investment dynamics, particularly with emerging markets showing promising returns in 2025 [2][3]. Investment Performance - In 2025, the iShares Core MSCI Emerging Markets ETF achieved a return of approximately 32%, surpassing the Vanguard S&P 500 ETF's return of 18% [2]. - Emerging markets are currently trading at a forward price-to-earnings (P/E) ratio of 12, significantly lower than the S&P 500's 20, indicating a deep-value opportunity [9]. Economic Growth Projections - The International Monetary Fund (IMF) forecasts that emerging markets will grow by an estimated 4.2% in 2026, compared to 2.4% for the U.S. and 1.8% for developed markets [6]. - By 2027, the U.S. growth rate is expected to decline to 2%, while emerging markets are projected to maintain similar growth rates [6]. Market Conditions - A weakening dollar and the global macroeconomic environment are expected to support the growth of emerging markets, potentially unlocking value in this sector [7][11]. - Historically, emerging markets have traded at a discount of 20%-25% compared to U.S. stocks, but the current discount is around 40%, suggesting a significant investment opportunity [10]. Future Outlook - The conditions appear favorable for emerging markets to experience an extended period of outperformance, driven by rising U.S. government debt and a supportive global economic backdrop [11].