Non-U.S. stock markets outpaced the S&P 500 in 2025 by wide margins, challenging U.S.-centric equity gains. The U.S. market has become heavier in big tech names. Diversifying outside the U.S. can provide broader diversification, access to lower price-to-earnings multiples, and exposure to stronger past-year momentum. Goldman Sachs Research projects global stocks could rise about 11% in the year ahead. The iShares MSCI South Korea ETF (EWY) climbed nearly 104% over the past 12 months, driven largely by Samsung and SK Hynix, which together account for more than 45% of the ETF.
"Undoubtedly, the U.S. equity market, which has gotten heavier in the big tech names, has been seen as a place to do incredibly well, especially when compared to the global markets. And while diversifying outside of the U.S. may still not be key to S&P-beating gains over the long run, I do think that it is worth considering what else is out there if you seek more diversification, lower price-to-earnings (P/E) multiples,"
"In the past 12 months, shares of the South Korean ETF are up just shy of 104%. With the South Korean market in breakout mode, thanks in part to Samsung (up 157% in the past year) and SK Hynix (up 286%), which comprise more than 45% of the ETF, perhaps investors seeking exposure to two of the hottest AI beneficiaries outside of the U.S. might wish to add the South Korean ETF to the watchlist."
Read at 24/7 Wall St.
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