AVIV REIT INC COM STK (MD)

AVIV

Foreign equities have done well in 2025, and it makes sense why —  many U.S. investors have looked to zig when U.S. stocks have zagged. That helped foreign equities ETFs spike in the late spring and early summer period.

When it comes to the battered U.S. economy, troubling news seems to just keep coming in. Looking to international funds isn't a shocking response.

International equities have had a strong start to 2025. The top-performing nonleveraged ETFs YTD include numerous funds focused on non-U.S. equities.

Many investors are considering diversifying away from the U.S. While the domestic stock market remains strong, it is also quite expensive. What's more, concentration risk as the U.S. stock market relies on just a handful of firms puts portfolios and the broader stock market at risk.

Foreign investing presents significant benefits, but simple, passive strategies may not be cut out for it. A U.S. equities-focused passive strategy invests in some of the most closely scrutinized firms on Earth.

The International Monetary Fund (IMF) has upgraded its global growth forecast for 2024.

Large caps dominated in 2023. But as investors continue to seek opportunities in 2024, international equities could be extending last year's rally.

With the expectation of Federal Reserve rate cuts to come this year, global central banks could also follow suit. This could pave the way for international equities to run higher, giving investors upside while also getting diversified exposure.