5 International ETFs Beating The S&P 500 In Q1
Zacks Investment Research | Mar 24, 2015 01:49AM ET
The U.S. stock market hit multiple record highs on several occasions this year, but the real encouragement came from international investing. Despite a strong dollar, most of the developed and developing markets broke free from last year’s malaise of slow growth and have started to show strength on monetary easing policies.
This is especially true as Vanguard FTSE All World X US (NYSE:VEU)targeting the international equity market has gained about 6% so far this year compared to a gain of 4.5% for iShares MSCI ACWI Index Fund (NASDAQ:ACWI), which targets the global stock market including the U.S.
Japan came out of recession and sentiments are turning bullish on Europe. Notably, German blue chip DAX 30 index got boost from the launch of trillions of euro bond-buying program by the European Central Bank (ECB) and the continued slide of euro and breached 12,000 for the first time in its history.
In the emerging market world, Russia is finding its footing this year while India and China continue to show resilience. In fact, Chinese stocks have been on a tear with the Shanghai Composite Index breaking the key resistance level of 3,400 last week to hit an almost seven-year high. Further, oil has rebounded from its multi-year low reached in January, spreading optimism across the globe.
Strong sentiments are likely to continue on the international bourses as the Fed set the stage for a slower-than-expected interest rate rise in its latest FOMC meeting, citing concerns on inflation and economic growth. The move will continue to weaken the U.S. dollar and attract more foreign inflows, raising the appeal for the equities in these nations.
Given improving international trends, many ETFs have generated handsome returns and easily crushed the broad market fund (Original post
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