Core Insights - The Invesco RAFI Developed Markets ex-U.S. ETF (PXF) has achieved a 22.4% return over the past year, outperforming both the iShares MSCI EAFE ETF (EFA) and the SPDR S&P 500 ETF Trust (SPY) [2][3][6] - PXF's fundamental weighting methodology has favored value sectors such as financials and energy, aligning with the market's shift away from expensive U.S. growth stocks [3][6] - A significant factor in the performance of international equities has been the weakness of the U.S. dollar, which enhances the value of foreign earnings when converted back to dollars [4][6] Performance Comparison - PXF's return of 22.4% surpasses EFA's 18.7% and SPY's 19.2% over the same period, indicating a notable shift in market leadership [3][6] - The maximum drawdown for PXF was only 8.3%, reflecting a stable performance amidst market fluctuations [2] Currency Dynamics - The decline of the U.S. dollar against major currencies has provided a favorable environment for international stocks, benefiting U.S. investors through currency translation [4][6] - Monitoring the DXY Dollar Index is crucial for confirming ongoing trends in international market performance [5]