U.S. stocks hit new records, with the S&P 500 up 17% YTD. International stocks outperform, with MSCI All Country World ex USA Index up 30% and leading U.S. indexes. AI-driven gains raise concerns about a bubble, prompting investors to look abroad. Dollar weakness boosts returns on foreign indexes amid global economic growth.

Despite strong U.S. stock performance, international stocks offer better value and diversification. U.S. dollar weakness benefits foreign investments. U.S. leads in AI sector with innovative companies like NVIDIA, Microsoft, and Alphabet. Consider allocating to Vanguard Total International Stock ETF, iShares MSCI Intl Value Factor ETF, and Cambria Global Value ETF for portfolio balance.

To boost your portfolio with top ETF insights, subscribe to Zacks’ Fund Newsletter for actionable information, news, and analysis. Don’t miss out on this valuable resource for free. Get the latest recommendations from Zacks Investment Research and access free stock analysis reports for Alphabet Inc., Microsoft Corporation, NVIDIA Corporation, SPDR S&P 500 ETF, Vanguard Total International Stock ETF, Cambria Global Value ETF, and iShares MSCI Intl Value Factor ETF.

Read more at Nasdaq: Worried About an AI Bubble? Look to Surging International Stocks