Best International Equity ETFs of 2025
ETFs are booming in the US, but that doesn't mean investors are keeping their investments stateside.
International equity ETFs that invest in publicly traded companies have surged this year, posting returns of 20% or more and cementing international funds at the top of the heap of the best performing funds of 2025's first half. The massive gains were due to overperforming European markets and strong performing sectors in other countries.
The outperformance in Europe, relative to both the US and international stocks more broadly, can be attributed to an 'increased willingness' for those countries to invest in companies that help drive economic growth, said Zachary Evens, a Morningstar research analyst. 'Banks and utilities and industrials and communication service companies, like telecoms, these companies are more boring,' he said. 'They don't typically grow very fast, but they benefit from broad economic growth, so a lot of the outperformance has been concentrated in some of those stocks.'
READ ALSO: Why Invesco Wants QQQ to Become an Open-End Fund and Bitcoin with Bubblewrap: Calamos Preps Laddered ETFs
Across The Pond
European stocks have outperformed their US counterparts for the past three years, reversing a trend of US dominance that began following the Great Recession, with the MSCI EMU Index outpacing the S&P 500 by more than 35 percentage points since 2022, according to Schwab. International stocks in general have also beaten American stocks, as measured by the MSCI EAFE Index. Some of the top-performing international markets ETFs so far this year are:
The Schwab International Dividend Equity ETF (SCHY), which tracks a market-cap-weighted index of foreign stocks and had YTD returns of 20.7%.
The Vanguard Total International Stock ETF (VXUS), which has an expense ratio of .05% and holds more than 8,600 stocks in companies from both developed and emerging markets. It posted YTD returns of 18.3%.
The SPDR Portfolio Emerging Markets ETF (SPEM), which tracks emerging markets in countries like China, India, Brazil, South Africa, and Mexico and had YTD returns of 14.3%.
Still, diversification is key to avoiding region-specific downturns. 'If Spain grows by a lot, but France falters, then diversification will even that out… That also goes for the sector side,' said Evens. 'You would be better suited to be more diversified across sectors and countries to minimize those negative impacts.'
All Hail the Sector. Sector performance tends to be the main driver of stock performance, with US markets leaning heavily on tech companies in recent years. Still, outside factors — inflation, political deals, tariffs — have an impact on sectors, which in turn affects markets, according to Evens. 'What impacts the performance of those sectors would be more idiosyncratic risks or geopolitical factors, or economic factors,' he said. 'Weighing those is how investors can think about potential outperformance or underperformance of the respective markets.'
This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
What Makes Flowserve (FLS) an Investment Bet?
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund's best picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Flowserve Corporation (NYSE:FLS). Flowserve Corporation (NYSE:FLS) is an industrial flow management equipment manufacturer. The one-month return of Flowserve Corporation (NYSE:FLS) was 10.87%, and its shares gained 8.85% of their value over the last 52 weeks. On July 22, 2025, Flowserve Corporation (NYSE:FLS) stock closed at $53.87 per share, with a market capitalization of $7.045 billion. Aristotle Capital Small Cap Equity Strategy stated the following regarding Flowserve Corporation (NYSE:FLS) in its second quarter 2025 investor letter: "Flowserve Corporation (NYSE:FLS), manufactures and provides aftermarket services for comprehensive flow control systems critical to a diverse range of end markets. We view the company as having an established track record of strong operating and financial fundamentals and the stock was trading at an attractive valuation. Subsequent to initiating the position, the company announced a merger with Chart Industries (GTLS) that is expected to enhance the combined companies' ability to provide more products and services to their global customers' projects." A group of industrial workers in coveralls operating a large scale pump system in a factory. Flowserve Corporation (NYSE:FLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Flowserve Corporation (NYSE:FLS) at the end of the first quarter, which was 60 in the previous quarter. While we acknowledge the potential of Flowserve Corporation (NYSE:FLS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Flowserve Corporation (NYSE:FLS) and shared the list of most undervalued industrial stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18 minutes ago
- Yahoo
How To Earn $500 A Month From Alphabet Stock Ahead Of Q2 Earnings
Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) will release earnings results for the second quarter, after the closing bell on Wednesday, July 23. Analysts expect the Mountain View, California-based company to report quarterly earnings at $2.17 per share, compared to $1.89 per share in the year-ago period. Alphabet projects to report quarterly revenue of $93.72 billion, compared to $84.74 billion a year earlier, according to data from Benzinga Pro. The Google parent company has beaten analyst estimates for revenue in 10 straight quarters. It has also beaten analyst estimates for earnings per share in nine straight quarters. With the recent buzz around Alphabet, some investors may be eyeing potential gains from the company's dividends. As of now, Alphabet offers an annual dividend yield of 0.44%, which is a semi-annual dividend amount of 21 cents per share (84 cents a year). So, how can investors exploit its dividend yield to pocket a regular $500 monthly? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,366,742 or around 7,143 shares. For a more modest $100 per month or $1,200 per year, you would need $273,425 or around 1,429 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.84 in this case). So, $6,000 / $0.84 = 7,143 ($500 per month), and $1,200 / $0.84 = 1,429 shares ($100 per month). View more earnings on GOOGL Note that the dividend yield can change on a rolling basis, as both the dividend payment and the stock price fluctuate over time. How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield. GOOGL Price Action: Shares of Alphabet gained 0.7% to close at $191.34 on More: Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? ALPHABET (GOOGL): Free Stock Analysis Report ALPHABET (GOOG): Free Stock Analysis Report This article How To Earn $500 A Month From Alphabet Stock Ahead Of Q2 Earnings originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
18 minutes ago
- Yahoo
Chinese automakers gain ground in contracting European market, data shows
By Amir Orusov (Reuters) -Car registrations across Europe declined in June, with a 4.4% year-on-year drop to 1.25 million vehicles, data from Jato Dynamics showed on Wednesday. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. WHY IT'S IMPORTANT Chinese automakers are expanding in Europe, breaking into a market traditionally dominated by European and American brands supported by their cheaper pricing amid a shift towards electric vehicles. This has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers. BY THE NUMBERS Chinese brands nearly doubled their combined share of the European market to 5.1% in the first half of 2025, just shy of Mercedes-Benz's 5.2%, the report said. Registrations of Chinese vehicles surged 91% since the start of the year. BYD, Jaecoo, Omoda, Leapmotor and Xpeng were the five names fuelling the surge, with BYD alone registering 70,500 units in the first six months of 2025, a 311% jump from a year ago. Stellantis saw the steepest market share decline among major automakers, to 15.3% from 16.7% a year earlier. The second biggest decline came from Tesla, to 1.6% in the half-year period versus 2.4% last year. Registrations of battery electric vehicles (BEV) surpassed one million for the first time in the first half, with a 25% rise to 1.19 million units — 17.4% of the market. KEY QUOTES "Persistently high prices, geopolitical and economic tensions with Europe's trading partners, and the postpandemic market reality are behind the decline," Felipe Munoz, global analyst at JATO Dynamics, said. "The updated Tesla Model Y has so far failed to provide the expected sales boost for the brand," Munoz said. "At the same time, competition from BYD and Volkswagen Group is making it harder for Tesla to maintain its leadership position."