Investors added $165.4 billion to U.S.-listed ETFs in January 2026, according to FactSet data. While that marked a cooldown from December’s record $225 billion haul, flows were still well ahead of the $107 billion gathered in January of last year. The most notable development was where the money went. Rather than U.S. stock ETFs leading the charge, international equity ETFs topped the inflow rankings for the month. The category pulled in $68.2 billion, outpacing the $42.7 billion that flowed into U.S. e ...

Core Insights - U.S. stocks had a strong performance in 2025, with the S&P 500 increasing by 16.4%, despite a significant drop in March and April [1] - International stocks outperformed U.S. stocks, with the MSCI World ex USA index rising by 32.6% due to a weakening dollar and shifts in investment strategies influenced by trade policies [1] - The S&P 500 has shown impressive total returns of 26.3% and 25% in the two preceding years, with an average annual return of 14.8% since 2009, significantly above its historical average [5] Investment Performance - The S&P 500's stock prices have increased at more than double the rate of cumulative earnings-per-share growth since 2009, leading to a high forward price-to-earnings (P/E) ratio of nearly 22 times forward earnings expectations [6] - The cyclically adjusted price-earnings (CAPE) ratio, developed by economist Robert Shiller, has surpassed 40, a level not seen since the dot-com bubble, indicating potential overvaluation in the market [7] Future Outlook - Shiller forecasts muted returns for the S&P 500 over the next decade, predicting average annual nominal returns of only 1.5%, which may not keep pace with inflation [8] - Investors are encouraged to consider whether international stocks can maintain their momentum and continue to outperform in 2026 and beyond [3]

The CIO of Crossmark Global Investments also expects that inflation will remain sticky for another year. ...

With international stocks back in style, investors are looking for diversification -- and this ETF delivers plenty of it.It may be an understatement to say international stocks are experiencing an epic renaissance in 2025. With time running out on the year, it's clear the MSCI EAFE Index will beat the S&P 500 for just the second time since 2019 and will do so by a wide margin.That spells relief for investors who had embraced international equities in the name of diversification, only to be left disappointed ...

Markets are shifting quickly, and investors are rethinking how to diversify their portfolios. Inflation remains stubborn, while international stocks keep trading at deep discounts. Small caps may finally be entering an earnings rebound. In this environment, some of the best ETFs may come from areas that investors have overlooked for years. Philip Blancato, president and CEO of Ladenburg Thalmann Asset… ...

Market Trends - International stocks are outperforming U.S equities after a decade of underperformance [1] - Vanguard experts provide insights on the potential continuation of this trend [1]

Market Trends & Performance - International stocks and ETFs are outperforming the US stock market [1][2] - The MSCI All Country World ex USA Index is up approximately 30% year-to-date, marking its widest outperformance against broad US indexes in 16 years [3] - US dollar weakness, declining about 9% this year, boosts returns of foreign indexes in dollar terms [3] - International stocks are attractively valued after 10-15 years of underperformance versus US stocks [3] ETF Analysis & Diversification - Diversification and better valuation are reasons to consider international stock ETFs [5] - VXUS, a Vanguard ETF, holds 8,700 developed and emerging market stocks excluding the US, with a 005% expense ratio and $111 billion in assets [6] - IVLU, an iShares ETF, focuses on value characteristics, holding 343 large and mid-cap developed excluding US stocks, with a 030% expense ratio and $8 billion in assets [9] - Gwell, a Cambria ETF, is actively managed, focusing on the cheapest countries in the world with a concentrated portfolio of 113 stocks, a 066% expense ratio and $353 million in assets [10][11] Sector & Country Allocation - International stock ETFs offer more diversification to sectors beyond technology, such as financials and industrials [8] - Top countries in VXUS include Japan, China, UK, Canada, and Taiwan [9] - Japan receives approximately 30% weight in IVLU [9] Comparative Performance - Gwell is up about 47% year-to-date, IVLU is up about 37%, and VXUS is up about 30%, compared to the S&P 500 index which is up about 17% year-to-date [13]

Core Insights - The period from 2015 to 2024 was challenging for international stocks, with the MSCI EAFE Index returning 66.9%, significantly lower than the S&P 500's 239.9% gain [1] Group 1: Current Performance - The iShares Core MSCI EAFE ETF (IEFA) has shown strong performance in 2025, returning 27.6% as of October 17, outperforming the S&P 500's 14.4% gain [2] Group 2: Investor Behavior - Many U.S. investors are underallocated to international stocks, with an average weight of only 25% in their equity portfolios compared to domestic equities [4][5] - This underallocation presents an opportunity for IEFA to rally further if U.S. investors adjust their perspectives on international equities [5] Group 3: Market Opportunities - Japan is highlighted as an underowned market, with inexpensive stocks and ongoing corporate governance changes that encourage buybacks and dividends [6] - The IEFA fund allocates 24% of its investments to Japanese stocks, suggesting potential benefits if global asset allocators recognize the value in Japan [6]

Core Insights - International equities, particularly dividend payers, are outperforming U.S. stocks, with the ALPS International Sector Dividend Dogs ETF (IDOG) achieving a year-to-date gain of nearly 26% and reaching a 52-week high [1][2]. Performance Metrics - IDOG has outperformed the S&P 500 by nearly 2-to-1 since the beginning of the year, with only 10.57% of its allocation in technology stocks [2]. - French and Japanese stocks account for over 31% of IDOG's geographic exposure, contributing to its strong performance [3]. Market Dynamics - Many U.S. investors are under-allocated to international stocks, with only about 25% of their stock portfolios in this category, despite international stocks representing nearly 40% of global equity market capitalization [4][5]. - The declining U.S. dollar has positively impacted international stocks, enhancing returns for U.S. investors by increasing the value of foreign earnings when converted back to U.S. dollars [5][6]. Future Outlook - Experts suggest that international equities may have further upside potential, especially as U.S. investors may need to reassess their allocations towards international stocks [4][5]. - The current trend of U.S. dollar weakness is expected to continue, which could further benefit international equities [6].

Group 1 - The individual began investing in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - Recently, the investment strategy has evolved to combine long stock positions with covered calls and cash secured puts, reflecting a more sophisticated approach to investing [1] - The investment philosophy is fundamentally long-term, with a primary focus on REITs and financials, while occasionally exploring ETFs and other stocks based on macro trade ideas [1]