Market Overview - The S&P 500 has started 2026 poorly, underperforming most developed-market indexes as investors retreat from U.S. tech stocks with high valuations [1] - International diversification has been a successful strategy for investors over the past two years and is gaining traction in 2026, although selecting international stocks can be challenging and costly [1] International ETFs - The Franklin FTSE South Korea ETF is highlighted, with South Korea's KOSPI showing significant gains, while Japan's Nikkei 225 has risen over 11% this year due to pro-corporate policies proposed by the new Prime Minister [2] - The Global X MSCI Norway ETF (NORW) has shown strong upward momentum, breaking out last year and maintaining a bullish trend despite its volatility due to low trading volume [3] - The iShares MSCI Australian Index Fund ETF (EWA) has a significant portion of its holdings in the financial sector and minerals, with signs of a potential breakout as technical indicators remain bullish [4] - The iShares MSCI Sweden ETF (EWD) benefits from a high-trust society and strong governance, showing an upward trend with potential entry points for new investors if shares dip to the 50-day SMA [5]

Core Insights - International stocks outperformed U.S. stocks in 2025 after a decade of U.S. dominance, driven by currency fluctuations and a changing geopolitical environment [1] - Three international stocks are highlighted as potential strong performers in 2026: Restaurant Brands, Alibaba, and MercadoLibre [1] Group 1: Restaurant Brands (QSR) - Restaurant Brands was formed from a merger between Tim Horton's and Burger King, and has since acquired Popeye's and Firehouse Subs [1] - The company has shown slight weakness in recent quarters but is expected to benefit from a trade-down trend in dining due to inflation, potentially increasing foot traffic and margins [1] - The stock is considered a defensive growth option, currently trading at a discount to historical levels despite year-over-year revenue and earnings growth [1] Group 2: Alibaba (BABA) - Alibaba is a leading global growth stock with significant potential, driven by its core e-commerce business and artificial intelligence initiatives [1] - The company reported an 8% year-over-year revenue growth, with over 20% growth in its international e-commerce segment, which is a high-margin area [1] - Free cash flow margins reached 20% due to cost discipline, indicating strong financial health and future growth prospects [1] Group 3: MercadoLibre (MELI) - MercadoLibre is a major e-commerce and fintech player in Latin and South America, providing exposure to approximately $1 trillion in GDP [1] - The company achieved 35% year-over-year growth in its e-commerce business, supported by a 40% growth in its Mercado Pago segment [1] - With around $5 billion in annual free cash flow and world-class margins of about 12%, MercadoLibre is viewed as a strong investment opportunity [1]

Core Viewpoint - Matthews International Capital Management is transitioning back to leadership from its founding era, with founder G. Paul Matthews and executive chairman Mark Headley set to take a controlling interest in the firm, pending necessary approvals [1][4]. Group 1: Leadership Transition - G. Paul Matthews and Mark Headley will regain control of Matthews International Capital Management, reflecting a return to its founding leadership [1][4]. - Several longstanding partners of the firm are expected to increase their equity stakes during this transition [1]. Group 2: Strategic Vision - Paul Matthews expressed confidence in the firm's future and the importance of international diversification, which he believes remains compelling [2]. - Mark Headley emphasized the commitment to serving clients with independence and focus, highlighting the shared conviction in the firm's future [4]. Group 3: New Appointments - Kathy Xu will join Matthews International Capital Management in Hong Kong, bringing experience from APG Asset Management and Aberdeen Asset Management [2][3]. - Xu will collaborate with Headley on the Matthews Pacific Tiger Fund and the Matthews Pacific Tiger Active ETF starting March 9, 2026 [3].

Core Insights - The Vanguard Total International Stock ETF (VXUS) and iShares MSCI Emerging Markets ETF (EEM) differ significantly in cost, yield, diversification, and risk, with VXUS providing broader international exposure and EEM focusing on emerging markets [1][2] Cost & Size Comparison - VXUS has an expense ratio of 0.05%, significantly lower than EEM's 0.72% - The one-year return for VXUS is 31.4%, while EEM's is higher at 36.2% - VXUS offers a dividend yield of 3.0%, compared to EEM's 2.1% - VXUS has assets under management (AUM) of $606.2 billion, whereas EEM has $26.95 billion [3][4] Performance & Risk Analysis - Over five years, VXUS experienced a maximum drawdown of 29.43%, while EEM had a higher drawdown of 39.82% - An investment of $1,000 in VXUS would grow to $1,277 over five years, compared to $1,046 for EEM [5] Sector Composition - EEM's portfolio is concentrated in emerging markets, with technology (28%), financial services (22%), and consumer cyclical (12%) as leading sectors, holding 1,214 stocks [6] - VXUS covers a wider range of international markets, with financial services (23%), industrials (16%), and technology (15%) as its top sectors, and it holds 8,602 stocks [7] Investor Suitability - EEM is suited for aggressive investors seeking high growth potential from emerging markets, despite its higher expense ratio and risk profile [8] - VXUS is recommended for long-term investors looking for stability and lower costs, with a more attractive dividend yield [10]

Core Insights - The Schwab Emerging Markets Equity ETF (SCHE) and iShares Core MSCI EAFE ETF (IEFA) provide low-cost international diversification but differ significantly in regional focus, sector weights, and recent performance [1][2] Cost & Size - Both SCHE and IEFA have an expense ratio of 0.07% - As of February 4, 2026, SCHE has a one-year return of 26.1% while IEFA has a return of 29.0% - SCHE offers a dividend yield of 2.8%, whereas IEFA provides a higher yield of 3.4% - SCHE has a beta of 0.87, indicating lower volatility compared to the S&P 500, while IEFA has a beta of 1.01 - Assets under management (AUM) for SCHE stand at $12.2 billion, significantly lower than IEFA's $173.4 billion [3][4] Performance & Risk Comparison - Over the past five years, SCHE experienced a maximum drawdown of -35.70%, compared to IEFA's -30.41% - An investment of $1,000 in SCHE would have grown to $1,027 over five years, while the same investment in IEFA would have grown to $1,338 [5] Portfolio Composition - IEFA includes over 2,500 developed-market stocks, with significant sector allocations in financial services (22%), industrials (20%), and healthcare (11%) - Major holdings in IEFA include ASML Holding, Roche Holding, and HSBC Holdings - SCHE focuses on emerging markets, with a notable emphasis on technology (23%) and financial services (23%), featuring top positions in Taiwan Semiconductor Manufacturing, Tencent Holdings Ltd., and Alibaba Group [6][7] Investor Implications - IEFA is suitable for investors seeking lower risk and volatility, given its focus on developed markets and larger number of holdings, which contributes to its lower five-year drawdown and higher dividend yield - SCHE appeals to aggressive investors looking for growth, particularly in technology stocks, but comes with higher volatility and political risks associated with emerging markets [9][10]

Quick Read Vanguard Total International Stock ETF (VXUS) returned 38.4% over the past year. VXUS outpaced VTI’s 15.0%. VXUS holds $606.2B in assets with exposure to financials and energy through Royal Bank of Canada and Enbridge. VXUS gained 51.8% over five years compared to VTI’s 66.4%. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. If you own U.S. stocks, you've likely questioned whether interna ...

If you own U.S. stocks, you've likely questioned whether international diversification still makes sense. ...

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Core Insights - J.P. Morgan Asset Management has launched the JPMorgan International Dynamic ETF (JIDE) on NYSE Arca, aimed at providing U.S. investors with access to international equity markets [1][2] Group 1: Product Overview - JIDE targets the $2 trillion Foreign Large Blend category, focusing on large and mid-cap stocks in developed markets outside North America, including regions like Australia, Japan, and the UK [2] - The fund's holdings are similar to those in the MSCI EAFE Index and are not limited by style or sector [2] Group 2: Management and Strategy - The fund is managed by the International Equity Portfolio Management team, led by Jon Ingram, with over 60 years of combined investment experience among the portfolio managers [3] - JIDE aims to provide a dynamic investment strategy leveraging global research and expertise to adapt to changing market conditions [3] Group 3: Cost and Market Position - JIDE is competitively priced with a net expense ratio of 55 basis points [4] - J.P. Morgan Asset Management is recognized as the largest issuer of active ETFs globally, reflecting its commitment to innovative investment solutions [4] Group 4: Company Background - As of December 31, 2025, J.P. Morgan Asset Management manages $4.2 trillion in assets and serves a diverse client base including institutions and high net worth individuals [5] - JPMorgan Chase & Co. reported $4.4 trillion in assets and $362 billion in stockholders' equity as of the same date, positioning itself as a leader in various financial services [6]

Core Insights - The article compares two international ETFs, iShares Core MSCI EAFE ETF (IEFA) and iShares MSCI ACWI ex U.S. ETF (ACWX), highlighting their differing approaches to international equity exposure [1] Cost & Size - IEFA has a lower expense ratio of 0.07% compared to ACWX's 0.32% [2] - IEFA's one-year return is 28.66%, while ACWX's is 31.86% [2] - IEFA offers a higher dividend yield of 3.4% versus ACWX's 2.7% [2] - IEFA has assets under management (AUM) of $170.35 billion, significantly higher than ACWX's $8.6 billion [2] Performance & Risk Comparison - Over five years, IEFA's maximum drawdown is -30.41%, slightly worse than ACWX's -30.06% [4] - A $1,000 investment in IEFA would grow to $1,302 over five years, compared to $1,267 for ACWX [4] Portfolio Composition - ACWX holds 1,796 companies across developed and emerging markets, with a focus on financial services, industrials, and technology [5] - IEFA focuses on developed markets with 2,619 stocks and a lighter allocation to technology [6] - The largest holdings in ACWX include Taiwan Semiconductor Manufacturing, Tencent Holdings, and ASML Holding, while IEFA's largest holdings are ASML, Roche Holding, and HSBC Holdings [5][6] Investor Considerations - Both ETFs exclude U.S. stocks, and their international holdings may behave differently from U.S. equities [7] - ACWX's top holdings are primarily based in Asia, while IEFA's are mainly in Europe, suggesting that U.S. investors should monitor relevant foreign events [8] - IEFA outperforms ACWX in terms of expense ratio, dividends, and five-year returns, but ACWX remains a viable option for exposure to both emerging and developed markets [9]