Core Viewpoint - The article discusses the potential of international ETFs that focus on value investing, highlighting the importance of identifying stocks that are less followed by average investors for profit opportunities [1]. Group 1: Investment Strategy - The article emphasizes a belief in the efficiency of financial markets, suggesting that most stocks reflect their true current value [1]. - It points out that the best profit opportunities arise from stocks that may not accurately reflect existing market opportunities [1]. Group 2: Author's Background - The author has over 25 years of experience in the financial world, including roles as an advisor, teacher, and writer [1].

Core Viewpoint - International markets are expected to continue their outperformance, driven by factors beyond just dollar weakness, indicating a shift towards more fundamental investing changes [1][2]. Group 1: International Market Performance - The dollar is projected to decline by approximately 1% annually over the next decade, contributing to the outperformance of international markets [2]. - International equities currently trade at a 32% discount to US equities, compared to an average discount of 19% over the past 20 years, highlighting strong valuation opportunities [3]. Group 2: Investment Opportunities - There are compelling investment opportunities in sectors such as financials, energy, materials, and select industries within the international market [3]. - The international value fund, ticker JIVE J, is highlighted as a top-performing fund with about $1 billion in inflows last year, indicating strong investor interest [4].

Core Insights - Valuation and economic concerns regarding the United States are increasing, leading to a focus on international investment options in 2025 that are outperforming the S&P 500 [1] Group 1 - International ETFs are gaining attention as they show better performance compared to the S&P 500 amid rising concerns in the U.S. market [1]

Core Viewpoint - The S&P 500 is expected to finish the year with historically decent gains despite recent turbulence [1] Group 1 - The past couple of weeks have been turbulent for the market [1] - The S&P 500 index is showing resilience and is on track for positive year-end performance [1]

Core Insights - The article emphasizes the importance of diversifying equity portfolios internationally, highlighting the performance of non-U.S. markets as a potential opportunity for investors [1] Group 1 - The performance of non-U.S. equities has been notable, suggesting that investors may benefit from considering international diversification [1]

Core Viewpoint - President Trump's comments regarding the next Federal Reserve chair have introduced uncertainty into the markets, particularly concerning the independence of the Fed and its monetary policy direction [1][2]. Market Implications - The potential for a more dovish Federal Reserve under a new chair has led investors to anticipate quicker and deeper interest rate cuts, resulting in a decline in Treasury yields and a weakening of the U.S. dollar [3]. - Lower interest rates are generally favorable for equities, especially in sectors sensitive to rate changes such as real estate, consumer discretionary, and commodities, which may lead to outperformance of related ETFs [4]. - A weaker U.S. dollar in a dovish monetary environment tends to enhance the attractiveness of non-U.S. assets, including emerging-market equities and international ETFs [5]. Risks to Market Confidence - The possibility of a politically aligned Fed chair could necessitate a "political risk premium," impacting investor confidence and potentially leading to concerns about policy consistency and inflation [6]. Scenario Analysis - Various scenarios could unfold, including a dovish pivot with accelerated rate cuts, a volatility spike due to fears of Fed politicization, or a status quo with ongoing uncertainty. Each scenario has distinct implications for ETF performance, with potential rallies in fixed-income ETFs and outperformance in equity and real-asset ETFs under a dovish pivot [7][8]. Investor Guidance - Investors should monitor the formal nomination announcement and comments from potential nominees regarding interest-rate policy and Fed independence. Positioning in rate-sensitive sectors and global diversification may be prudent if a dovish pivot occurs, while maintaining caution due to potential volatility [9].

Core Insights - International ETFs have demonstrated strong performance this year, surpassing major indices such as the Vanguard S&P 500 ETF and the Invesco QQQ Trust [1] Performance Comparison - The performance of international ETFs has been notably impressive, indicating a trend of resilience with fewer fluctuations compared to domestic counterparts [1]