"It's been a turbulent past couple of weeks, but the S&P 500 is poised to finish the year with some historically decent gains intact. At the time of this writing, the S&P is up just north of 14%. It's a solid return, but less so when you compare the last two years. When you zoom out to the global picture, the S&P 500's gains have been quite subpar, to say the least."
"Of course, when you compare the U.S. stock market to Spain, the iShares MSCI Spain ETF ( NYSEARCA:EWP) is up a mouth-watering 70% year to date, or other nations that have dwarfed the S&P's gains, it seems like it's time to go international, preferably opting for lower-valuation markets that might be able to score a better return over the next decade."
"The big gains don't stop at Spain's market, either. In fact, a number of nations have seen their indices rise more than 50-60%. The iShares MSCI Korea ETF ( NYSEARCA:EWY), which tracks the South Korean equity market, is up more than 73% year to date. Meanwhile, the iShares MSCI South Africa ETF ( NYSEARCA:EZA) is up close to 58% year to date."
The S&P 500 is up just north of 14% year-to-date, a solid return but modest compared with recent years and many global markets. Spain's equity ETF (EWP) has risen about 70% YTD, South Korea's ETF (EWY) about 73%, and South Africa's ETF (EZA) close to 58%, with numerous countries posting gains over 50–60%. Domestically overexposed investors face the question of whether buying international ETFs on strength can improve geographic diversification. Developed markets with lower valuation multiples could suit investors aiming to limit beta, while emerging markets carry different risks and correlations tied to heavy tech exposure.
Read at 24/7 Wall St.
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