International stocks are maintaining their outperformance over U.S. equities this year, a trend that has continued from 2022. Leading strategists anticipate further strength in these markets, citing factors such as attractive valuations, a weakening dollar, and increased defense and infrastructure spending. This environment presents a compelling case for portfolio diversification through international investments, particularly via exchange-traded funds (ETFs).
One standout option is the Invesco S&P International Developed Momentum ETF (IDMO), which has gained approximately 8% year-to-date, slightly outpacing the S&P 500’s 7% return. The ETF tracks the S&P World Ex-U.S. Momentum Index, focusing on 192 high-momentum international stocks, primarily from developed European and Asian markets. Its five-year average annualized return of 16.2% surpasses both the Russell 1000 and S&P 500, solidifying its position as one of the top-performing international ETFs.
For market professionals, IDMO represents a strategic avenue for capitalizing on the momentum in international equities, making it a valuable addition to diversified portfolios amid shifting macroeconomic trends.
Source: fool.com