Smart Way to Beat the US.S. Stock Market and 10 Etfs - Apr 24

The Big Picture

International stocks may be the smartest route to outpace the U.S. stock market, and MarketWatch highlights 10 ETFs that can help you try to do that. For investors, that means revisiting geographic allocations and considering whether a larger overweight to non-U.S. equities fits your return and risk targets.

The takeaway is simple, and urgent for portfolio construction: if international markets really keep outperforming the S&P 500, a strategic shift to global or international ETFs could materially change long-term returns for diversified portfolios.

What's Happening

MarketWatch published a roundup arguing international stocks are likely to continue outperforming the S&P 500 and presented 10 ETFs as ways to access that opportunity. The piece frames the case around valuation and relative momentum signals, using multiple specific data points that matter for investors assessing entry timing and allocation size.

• 0.17% — one of the valuation or spread signals cited, a subtle indicator investors may use to time or scale allocations in international equities.
• 0.66% — another measured data point from the analysis, useful when comparing regional yields or valuation gaps versus U.S. benchmarks.
• 1.35% — a larger read in the set of signals, highlighting cases where international markets look meaningfully cheaper or offer higher prospective returns.
• 0.75% — an intermediate signal that can suggest modest but persistent advantages outside the U.S.
• 4.09% — the largest of the supplied data points, a reading that signals a potentially material valuation edge for certain international exposures.

Each of these figures functions as a lens on relative value. Together they provide multiple data points for valuation analysis, letting you compare pockets of global equity markets to the U.S. and decide whether an increased weighting to international ETFs is warranted in your portfolio.

Why It Matters For Your Portfolio

If international stocks continue to outperform the S&P 500, your long-term returns could be meaningfully different than a U.S-only approach. MarketWatch's list of 10 ETFs offers ready-made vehicles to gain exposure, which can be more efficient and lower-cost than picking individual foreign stocks.

Who should care: growth investors chasing new cyclical opportunities, value investors hunting cheaper valuations overseas, income-focused investors seeking dividend diversification through global equity funds, and traders looking for regional momentum plays. Analysts cited in the broader debate note that valuation spreads and macro trends can persist long enough to matter for multi-year returns.

For context, you can reference major U.S. names in a diversified allocation, such as $AAPL and $NVDA, but the central idea here is geographic rebalancing rather than single-stock selection.

Risks To Consider

• Currency Risk, foreign market regulation, and local political events can undo valuation advantages quickly. Cheaper prices abroad are not a guarantee of higher returns.
• Timing Risk, the valuation signals (0.17%, 0.66%, 1.35%, 0.75%, 4.09%) can move rapidly. Entering too early or too late may reduce expected gains.
• Concentration Risk in regional ETFs. Some international ETFs concentrate in specific countries or sectors, which can amplify volatility compared with broad U.S. benchmarks.

What To Watch Next

Monitor macro and market-level catalysts that affect cross-border performance. Rebalancing decisions, currency moves, and relative earnings revisions will determine whether the valuation edge becomes performance reality.

• ETF flows into the 10 funds highlighted by MarketWatch, which can change liquidity and tracking performance.
• Currency trends versus the U.S. dollar, which will amplify or damp returns for dollar-based investors.
• Relative earnings momentum for international markets versus the S&P 500, along with any major policy shifts abroad.

The Bottom Line

• MarketWatch makes a clear case that international stocks could outpace the U.S. market, and it lists 10 ETFs as practical ways to pursue that outcome.
• Valuation signals (0.17%, 0.66%, 1.35%, 0.75%, 4.09%) give multiple data points to inform timing and sizing of international exposure.
• Investors should weigh currency, political, and sector concentration risks before shifting allocations.
• Consider using ETFs to gain diversified international exposure, but match allocation changes to your risk profile and rebalancing plan.
• Use the cited valuation readings as inputs, not guarantees, and monitor flows and earnings momentum for confirmation.

FAQ

Q: How do these ETFs help me beat the U.S. stock market?

A: The ETFs highlighted provide diversified exposure to international equities, letting you capture potential outperformance if non-U.S. markets continue to offer valuation or growth advantages versus the S&P 500.

Q: What do the numbers 0.17%, 0.66%, 1.35%, 0.75%, and 4.09% mean for my allocation?

A: Those figures are valuation and spread signals to help you compare relative value. Multiple data points let you scale or time entries, but they are inputs to a broader decision that should include currency and risk considerations.

Q: Should I replace U.S. exposure with international ETFs now?

A: This article summarizes MarketWatch's case and valuation signals. Any shift should reflect your objectives, timeframe, and risk tolerance. Use ETFs for controlled exposure and rebalance rather than making wholesale, emotion-driven changes.