Investors seem to be showing more interest in buying stocks beyond the U.S. market.
This doesn’t mean that the “U.S. exceptionalism” trend is over, but it does mean that there could be good opportunities for investors who diversify into international stocks
One of the best international exchange-traded funds (ETFs) is the iShares Core MSCI EAFE ETF (NYSEMKT: IEFA). It offers a diversified mix of stocks from more than 16 countries, with top holdings from Japan (25.2% of the fund), the United Kingdom (13.97%), France (8.9%), Switzerland (8.6%) and Germany (8.2%). This fund has slightly underperformed the S&P 500 index year to date, but it has an intriguing mix of holdings in its portfolio that could be worth a look for globally minded investors.
Let’s see why the iShares Core MSCI EAFE ranks among the best global stock ETFs. 2,632 stocks, 3.30% dividend yield, five years of 8.67% annualized returns The iShares Core MSCI EAFE ETF offers exposure to 2,632 international stocks. This fund owns large-cap, mid-cap, and small-cap stocks with a focus on developed markets beyond Canada and the U.S. “Developed markets” means this ETF invests in stocks based in countries known for political stability, financial regulations, and prosperous economies — and hopefully, those countries’ companies will deliver good returns for shareholders. The iShares ETF’s top five stock holdings (as of May 29) are semiconductor company ASML Holding (2.46% of the fund), international financial services giant HSBC Holdings (1.26%), and multinational pharmaceutical companies Roche (1.16%), AstraZeneca (1.1%), and Novartis (1.08%).