MYworldfix

International stock markets have demonstrated remarkable strength as the third quarter of 2025 progresses, significantly outpacing their U.S. counterparts. While the S&P 500 has seen a respectable 12.7% increase year-to-date, the MSCI All World Ex. U.S. ETFs have surged by more than 24% over the same period. This trend highlights a notable shift in market leadership, with global equities outside the U.S. showing a robust recovery and substantial returns for investors.

Among the top performers, the Italian ETF (EWI) stands out with an impressive gain exceeding 45% since the beginning of the year. If this momentum continues, 2025 could mark the fund's most successful year on record, surpassing all previous annual performances since its launch in March 1996. This exceptional growth in specific international markets like Italy underscores a broader narrative of diversification benefits and strong performance in select global regions.

The current market landscape suggests that investors looking beyond domestic borders are being rewarded with superior returns. This strong showing by international stocks, particularly within the ETF space, reinforces the importance of a diversified investment strategy that includes exposure to global markets. As the year unfolds, it will be interesting to observe if these international trends persist and continue to offer compelling opportunities.