International ETFs Outperform S&P 500 in 2025, But Risks Persist
International ETFs have shown strong performance in 2025, with diversified options like Vanguard Total International Stock ETF (VXUS) and Vanguard FTSE Europe ETF (VGK) outperforming the S&P 500. However, investors should be cautious about market timing and understand the risks of investing in specific foreign markets.
Despite the U.S. government shutdown, the S&P 500 index has risen around 14% in 2025. This demonstrates the resilience of the U.S. stock market and the importance of maintaining a balanced portfolio. While some international ETFs, such as the iShares MSCI Poland ETF (EPOL), have traded up significantly (57% in 2025), late entry into the market may pose risks.
Diversification can help reduce exposure to U.S. political risks by spreading investments across various countries and sectors. However, it's crucial to understand the economic and market conditions of the countries involved. For instance, lack of knowledge about Poland's economy and stock market may pose risks to investing in the MSCI Poland ETF.
In conclusion, while international ETFs have shown promising performance in 2025, investors should avoid market-timing games and ensure they understand the risks and benefits of diversification. The U.S. stock market has proven resilient despite political challenges, and a balanced portfolio approach remains a sound strategy.
Read also:
- HLC Approves ₹4,645.60 Crore for Flood Recovery and Wetland Rejuvenation in Nine States
- Crooked House Pub's Demolition: Council Orders Rebuild, Debate on Historic Building Protections
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Ethiopia's Grand Dam: 15,000 Lives Lost, Water Concerns Unresolved
