The iShares Core MSCI Total International Stock ETF (IXUS) has returned 50% since 2025, surpassing the S&P 500’s 27% gain.
ling the 27% gain of the Vanguard S&P 500 ETF over the same period. This outperformance marks a shift as international stocks lead U.S. equities by a significant margin
The rally in international stocks began in early 2025, driven by a weaker U.S. dollar, which boosted returns for overseas assets. Performance accelerated in 2026 as investors rotated from tech and high-risk assets into undervalued stocks, a category that includes many international equities.
The trend highlights growing investor interest in diversifying beyond U.S. markets, particularly as domestic equities face valuation concerns and sector-specific volatility.