"It's The Easiest Way To Invest In International Stocks Right Now"

"International stocks are having their moment, and the iShares Core MSCI Total International Stock ETF ( NYSEARCA:IXUS) is riding the wave. With a 36% gain over the past year, this $51 billion fund has nearly doubled the S&P 500's returns. The fund's ultra-low 0.07% expense ratio and massive diversification across developed and emerging markets have made it a go-to vehicle for investors looking beyond U.S. borders."

"The biggest macro factor for IXUS is U.S. dollar weakness. When the dollar declines against foreign currencies, international stocks get a tailwind because those companies' earnings translate back into more dollars for U.S. investors. Reuters polling of currency strategists in early January 2026 shows a bearish dollar outlook, with expectations for modest declines throughout the year. The MSCI All Country World ex-USA Index gained 29% in 2025, handily outpacing the S&P 500's 18% return, according to CNN reporting."

"Watch the DXY Dollar Index weekly. When it trends lower, international stocks typically benefit. JPMorgan Chase ( NYSE:JPM) Global Research maintains a bearish dollar outlook for 2026, citing expansionary U.S. fiscal policy and persistent deficits. If that view proves correct, IXUS could continue outperforming. But if the dollar strengthens unexpectedly due to renewed inflation concerns or geopolitical shocks, international stocks would face headwinds regardless of underlying business performance."

IXUS returned 36% over the past year and holds about $51 billion in assets. The fund charges a 0.07% expense ratio and spans developed and emerging markets for broad diversification. U.S. dollar weakness is the primary macro driver because foreign earnings convert into more dollars for U.S. investors when the dollar falls. Currency strategists polled by Reuters in early January 2026 expected modest dollar declines. The MSCI All Country World ex-USA Index gained 29% in 2025 versus the S&P 500's 18%. JPMorgan Global Research cites expansionary U.S. fiscal policy and persistent deficits as reasons for a bearish dollar outlook. If the dollar weakens further, IXUS could keep outperforming; if the dollar strengthens due to renewed inflation or geopolitical shocks, international stocks would face headwinds. A micro risk to monitor is geographic concentration, with seven of the fund's top ten holdings in Canada.

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