IXUS: International Stocks Now 8 Turns Cheaper Than The S&P 500
I maintain a buy rating on IXUS, driven by strong year-to-date momentum and attractive valuations versus the S&P 500. IXUS offers broad international diversification, low expenses, a higher yield, and a favorable PEG ratio, making it a compelling core holding. Technical analysis confirms a long-term breakout with bullish momentum, though some resistance and seasonal caution are warranted.
IXUS: A 9% Total Return Expected In The Long Term
The iShares Core MSCI Total International Stock ETF invests in both developed and emerging markets outside the United States. The ETF has had a strong start to 2025, benefitting from attractive valuations and a weak US dollar. Recent IXUS dividend growth has been particularly strong, at 8.43%, but I only expect dividends to increase by 6% in the long term.
IXUS: Fair Valuation And Macroeconomic Environment Turning Favorable
iShares Core MSCI Total International Stock ETF, with a low expense ratio of 0.07%, holds 4,500 international stocks and benefits from receding global inflation and rate cuts by major central banks. Despite underperforming due to low tech exposure, IXUS is poised for growth with a favorable macroeconomic environment and a weakening U.S. dollar. The global composite PMI and consensus earnings growth for IXUS stocks are improving, indicating a stronger economic outlook and higher earnings in 2025 and 2026.
IXUS: A Cheap Way To Add International Exposure
The iShares Core MSCI Total International Stock ETF tracks large, mid, and small capitalization companies outside the United States. IXUS has underperformed the Vanguard Total Stock Market ETF both in 2024 and over the past three years. This has resulted in IXUS offering a significantly higher earnings and dividend yield compared to the VTI.
