For the first time in what seems an eternity, international stocks outpaced domestic rivals in 2025, with many ex-U.S. exchange-traded funds (ETFs) trouncing the S&P 500. That trend is carrying over to 2026, as the iShares Core MSCI Total International Stock ETF (NASDAQ: IXUS) is up 7.5% year to date, compared with a 1.9% gain for the S&P 500.
The resurgence of international stocks isn’t confined to large caps. Smaller stocks contributed to that theme in 2025 and are showing signs of doing more of the same this year, underscoring why I’ve got the Avantis International Small Cap Value ETF (NYSEMKT: AVDV) atop my 2026 ETF shopping list.
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Winning small caps are found outside the U.S., and this ETF has…
