In 2025, international stock markets outperformed the U.S., with the Morningstar Global Markets ex-US Index rising 32% compared to the 17% return of the Morningstar US Market Index. This shift is attributed to currency tailwinds, gains in European and Japanese markets, and a strong performance in emerging markets like South Korea and Latin America.

Experts predict a bullish outlook for international equities in 2026, with the expectation of continued outperformance compared to U.S. markets. Factors such as a weakening dollar, attractive valuations, and higher dividend yields make international equities an appealing investment option for the year ahead.

Top international ETFs to watch include SPDW, JIVE, BKIE, and IDVO, which provide exposure to various international stocks outside the U.S. These ETFs have shown strong performance over the past year and offer opportunities to capitalize on the global momentum in international markets.

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Read more at CNBC: International ETFs to Watch as Foreign Stock Markets Beat the US