International ETFs to Watch as Foreign Stock Markets Beat the US

In a dramatic shift in market leadership, 2025 marks the year international stock markets finally break the decade-long ‘U.S. exceptionalism’ trend. According to data from Morningstar, the Morningstar Global Markets ex-US Index soared 32% in 2025, nearly doubling the 17% return of the Morningstar US Market Index. 

This significant outperformance places international equities — and, by extension, ETFs that hold them — in the spotlight as investors pivot away from a top-heavy U.S. market toward more attractively valued foreign opportunities.

What Fueled the Global Rally?

The international surge was not confined to a single region but reflected a broad-based recovery across both developed and emerging economies. Several key factors and regions outperformed the United States last year:

•    Currency Tailwinds: A weakening U.S. dollar, which saw its steepest half-year decline since 1991, acted as a massive tailwind for U.S.-based investors holding foreign assets.

•    Developed Markets: European markets led the charge, with Spain (Ibex 35) gaining nearly 50% and Germany (DAX) rising 23% last year (as per data from Trading Economics), fueled by fiscal stimulus and a resurgence in bank stocks. Japan (up 26%) also beat America as corporate governance reforms reinvigorated the Nikkei.

•    Emerging Markets: The MSCI EM Index returned approximately 34% in 2025. Standout performers included South Korea (+43%), driven by its critical role in the AI hardware supply chain. On the other hand, Latin America rallied as a perceived winner from shifting U.S. trade and tariff policies, with countries such as Brazil and Mexico among the standouts, posting gains of nearly 30% after a dismal 2024.

Outlook for 2026

The general market consensus for the international equity market this year remains bullish, with many experts believing we are in the early stages of a multi-year cycle of international leadership. 

JP Morgan's chief ETF strategist told CNBC that he expects international equity markets to continue outperforming, with the dollar projected to depreciate about 1% annually over the next decade. Also, valuations remain strong with international equities trading at a 32% discount to their U.S. counterparts, offering more room for future growth. 

While the United States faces concerns over record concentration and high price-to-earnings ratios, international markets are likely to offer higher dividend yields and untapped value.

International ETFs to Watch

Considering the aforementioned discussion, as the "Sell America Trade" continues, ETFs like those listed below that provide exposure to international stocks remain a strategic way to capitalize on this global momentum.

State Street SPDR Portfolio Developed World ex-US ETF SPDW

This fund, with assets under management (AUM) worth $37.78 billion, offers exposure to 2,387 developed international equities outside the United States. Its top three holdings include Samsung Electronics (1.76%), ASML Holding ASML (1.73%) and Roche Holding RHHBY (1.03%). 

SPDW has rallied 34% over the past year. The fund charges 3 basis points (bps) as fees. It traded at a good volume of 16.33 million shares in the last trading session.  

JPMorgan International Value ETF JIVE

This fund, with net assets worth $1.53 billion, offers exposure to 357 stocks across developed and emerging foreign markets, spanning all market capitalizations. Its top three holdings include Samsung Electronics (2.27%), RHHBY (1.84%) and HSBC Holdings HSBC (1.74%). 

JIVE has surged 52.9% over the past year. The fund charges 55 bps as fees. It traded at a volume of 0.42 million shares in the last trading session.  

BNY Mellon International Equity ETF BKIE

This fund, with net assets worth $1.23 billion, offers exposure to 985 international stocks (outside the United States). Its top three holdings include ASML (2.14%), RHHBY (1.27%) and HSBC (1.22%). 

BKIE has soared 30.3% over the past year. The fund charges 4 bps as fees. It traded at a volume of 0.18 million shares in the last trading session.  

Amplify CWP International Enhanced Dividend Income ETF IDVO

This fund, with net assets worth $940.7 million, offers exposure to 86 international dividend-paying stocks. Its top three holdings include Alibaba BABA (4.26%), Novartis NVS (3.63%), and Taiwan Semiconductor TSM (3.41%). 

IDVO has surged 34.7% over the past year. The fund charges 65 bps as fees. It traded at a volume of 0.63 million shares in the last trading session. 

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