One of the primary reasons for embracing ex-U.S. stocks is diversification or reducing correlations within U.S.-heavy portfolios. Thanks to single-country ETFs, it's much easier for U.S. market participants to invest in individual countries than it was in say the 1970s or 1980s.
International stocks finally found their respective grooves last year. With that momentum carrying over into 2026, advisors and investors are revisiting ex-U.S. ETFs in significant fashion.
International equities and related ETFs are rightfully commanding significant fanfare this year. That's because advisors and retail investors are flocking to stocks and funds that long lagged domestic equivalents.