The Ultimate Guide to International Investing: Top Funds and ETFs to Watch
Are you ready to diversify your portfolio and explore international markets? Our expert analysis shows that now may be the perfect time to consider international funds and ETFs.
In recent years, international assets have been overshadowed by domestic investments. However, our data reveals that the tides are turning, with several key players in the international space showing promising returns.
Leading the pack are the Oakmark International Investor Fund (OAKIX), the Emerging Markets ex-China ETF, the Vanguard FTSE Developed Markets Index Fund ETF, and the Janus Henderson Global Equity Fund (JFEAX). These funds are displaying strong performance, signaling potential growth opportunities in the international arena.
What sets apart the pure international vehicles from their US-heavy counterparts is their impressive 1-year returns. Non-China emerging markets, such as the EMXC ETF, are outperforming traditional Vanguard international ETFs that include a significant China weight. This trend suggests that international markets are ripe for investment.
Keep a close eye on how the market responds to fed funds rate reductions. A weaker dollar can benefit international equities and bonds, particularly in the fixed-income space where currency fluctuations play a significant role.
While past performance is not indicative of future results, history offers valuable insights into market trends. Just like the rotation into international assets following the dot-com bubble in 2000, we may be on the cusp of a similar shift today. Investors should consider diversifying into international markets to capitalize on potential outperformance compared to US equities.
Take a closer look at the 10-year returns of international mutual funds and ETFs, excluding those with a US component. While these returns may seem modest compared to domestic counterparts, such as the S&P 500 and Nasdaq, they offer unique opportunities for growth and diversification.
Remember, investing always carries risks, and past performance does not guarantee future success. Our analysis is intended as an opinion, not financial advice. Stay informed, stay vigilant, and consider the possibilities of international investing in your portfolio.
Thank you for reading.
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