The iShares Core MSCI Total International Stock ETF rose 29% over 12 months, surpassing the S&P 500’s 22% gain amid lower valuations.
The iShares Core MSCI Total International Stock ETF (IXUS) climbed 29% in the past year, outperforming the S&P 500’s 22% gain. The shift follows a prolonged period where U.S. tech stocks dominated investor portfolios, but international equities have recently attracted attention due to lower valuations.
The MSCI Total International Stock ETF trades at a price-to-earnings (P/E) ratio of nearly 18, compared to the S&P 500’s 26.5. The S&P 500’s top 10 holdings, heavily weighted in megacap tech, account for 38% of the index, while the MSCI’s top 10 represent just 14% with less concentration.
Despite the valuation gap, international stocks have remained undervalued for much of the past decade. Their recent performance raises questions about whether the trend will persist or revert to historical norms.