In 2025, emerging markets and UK stocks have outperformed global markets, with Morningstar’s Emerging Markets Index up nearly 30% and the UK Index posting gains of around 22%. Market sentiment stabilized after the US and China agreed on a new tariff framework in the summer, easing concerns and boosting global markets.

Investors are reevaluating their exposure to US markets due to the growing unpredictability of US policymaking. This shift in dynamic highlights the importance of global diversification, with concerns about the continued dominance of American stocks. The need for regional diversification is becoming more apparent in light of recent market developments.

Morningstar analysts recommend core global equity funds like JPM Global Select and Veritas Global Focus. JPM Global Select, led by manager Helge Skibeli, focuses on premium quality companies in attractive industries. Veritas Global Focus, managed by Andrew Headley, prioritizes capital preservation and long-term growth through a disciplined approach. Both strategies have delivered strong risk-adjusted returns over time.

Read more at Morningstar: Our Favorite Global Large-Cap Blend Funds