International stocks are performing admirably this year. As of July 22, the MSCI ACWI ex-US Investable Market Index, which combines developed and emerging market equities, is higher by 11.51%.
In broad terms, European equities have been decent though not spectacular performers this year. While some of the largest ETFs in the category have posted year-to-date upside, they continue to trail the upside of competing S&P 500 funds.
With international equities, including developed markets, extending the momentum accrued in 2026, some investors are ready to dip their toes into ex-U.S. waters. Some wonder how equity income fits into the equation.
Soaring oil prices and the military conflict in Iran are among the primary reasons the MSCI EAFE Index is off nearly 6% over the past month. That decline isn't surprising; many of the marquee developed markets comprising that index are energy importers.
Confirming the resurgence of international stocks, the widely followed MSCI EAFE Index trounced the S&P 500 last year, depressing the dividend yield on the foreign equity benchmark in the process. Rest assured equity income investors.