The resurgence of international exposure in the ETF space

International Market Performance - International markets have underperformed for an extended period, prompting consideration of potential investment opportunities [1] - The S&P 500 has been the worst-performing market year-to-date, underperforming both core emerging and developed markets [2] - A weaker dollar (down more than 10%) and shifts in international allocations away from the S&P 500 contribute to this deviation [3] - There's increasing discussion in Europe and the UK about redomiciling retail and retirement assets to reduce US investment [3] - International diversification can be beneficial, especially for portfolios heavily biased towards US investments [5] US Market Analysis - The US market is considered the most liquid, with a significant number of large global companies domiciled there (21 of the 25 largest) [7] - US exceptionalism may not be over, and significantly shifting investments to countries like Germany could be a tactical mistake [9] Investment Strategy - It's not advisable to abandon the S&P 500 entirely for international markets [4] - Investing in Europe might be a bet on cheap beta or a specific factor [8] - Over 95% of international markets are small to mid-cap companies (SMID) [7]