Is America the only good place for investors to put their money? For most of the past 15 years, U.S. stocks have delivered some of the strongest, most consistent returns compared to the rest of the world. But recently, more investors are looking for opportunities beyond the U.S. market.
So far, year to date, the iShares Core MSCI Total International Stock ETF (IXUS 1.25%) has gained about 13.5%. This international ETF has outperformed the S&P 500 index and has nearly matched the tech-heavy Nasdaq-100.
Looking at the past few years of returns, the iShares Core MSCI Total International Stock ETF has delivered 33.7% total return over the past year, 17.7% average annual returns for the past 3 years, and 9.3% over the past 10 years.
International stocks don’t always beat American ones, but if the rest of the world’s economy keeps growing, this global stock ETF could be worth owning. Here are a few reasons.
IXUS: diversification across 4,158 stocks
iShares Trust – iShares Core Msci Total International Stock ETF
Today’s Change
(-1.25%) $-1.20
Current Price
$94.76
Key Data Points
Day’s Range
$94.65 – $94.78
52wk Range
$73.70 – $96.38
Volume
29K
When buying international stocks, there can be a few additional challenges with evaluating foreign companies, managing currency exchange rate risks, and choosing which countries’ stock markets might outperform. The iShares Core MSCI Total International Stock ETF helps remove this complexity. It’s a well-diversified fund that provides broad exposure to 4,158 stocks from more than 20 countries. And it charges a low expense ratio of 0.07%.
Top markets represented in the fund are Japan (14.8% of the fund), Taiwan (8.3%), the United Kingdom (8.3%), Canada (7.97%), and China (6.8%). The top five sector holdings include financials (22.1% of the fund), information technology (18.7%), industrials (15.7%), consumer discretionary (8.4%), and materials (7.9%).
This global ETF is an easy, low-cost way to buy the world beyond the U.S. with thousands of international stocks all at once. It offers a good mix of emerging markets and developed markets, as well as large-cap, mid-cap, and small-cap stocks.
Buy into the global AI trade
Image source: Getty Images.
U.S. tech stocks aren’t the only way to invest in the artificial intelligence (AI) boom. Some of the best AI stocks are in other countries — because they’re making the semiconductors and memory hardware in demand for building AI infrastructure.
The iShares Core MSCI Total International Stock ETF lets you own innovative international tech stocks like Taiwan Semiconductor Manufacturing (4.15% of the fund), Samsung Electronics (2.03%), and SK Hynix (1.4%). The fund also owns shares in Chinese tech stocks such as Tencent Holdings and Alibaba Group, and major international financial stocks like HSBC Holdings.
Buying international stocks can be a good way for American investors to diversify their portfolios, especially if the U.S. dollar weakens. Some other international ETFs offer a wider range of stocks or slightly lower fees. But the iShares Core MSCI Total International Stock ETF is competitive with the best international ETFs and is worth considering for long-term investors.
HSBC Holdings is an advertising partner of Motley Fool Money. Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing and Tencent. The Motley Fool recommends Alibaba Group and HSBC Holdings. The Motley Fool has a disclosure policy.
