Investors are turning to international equities for better returns amid US market uncertainty

From Yahoo Finance: 2025-04-30 19:42:00

The US boasts the largest equity market and biggest companies, attracting investors for high liquidity. However, escalating trade wars have shifted focus to European equities, with EURO STOXX 50 soaring 11% as US indices slumped.

International investing is gaining traction due to policy issues and valuations. US stocks historically had higher P/E ratios, but now investors are turning to international equities for better returns and volatility dampening.

Xtrackers MSCI EAFE Hedged Equity ETF tracks developed markets outside the US and Canada with a 14.08% 5-year total return and 0.350% expense ratio. Ranked 7th on the best international index funds list, it offers exposure to Europe, Australasia, and the Far East with a passive investment approach.

Read more: Is Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) the Best International Index Fund to Invest In?