Why Foreign Stocks Are Beating US in 2025

In 2025, foreign stocks are taking the lead over US stocks. This shift is noticeable when looking at how different regions are performing. For instance, stocks in one particular area have jumped by 56. 1% so far this year. This is a big deal because US stocks are not keeping up. The US market, represented by the S&P 500, has grown by 18. 3% this year. While this is good, it's not as impressive as the gains seen in other parts of the world. A global stock fund that doesn't include US stocks has seen a 30. 1% return. This shows that diversifying investments beyond the US could have paid off this year.The strong performance of foreign stocks has sparked interest in global diversification. However, it's important to note that this is an unusual year. Over the long term, US stocks have often been the leaders. The question now is whether this year's trend will continue or if it's just a temporary blip. Looking at the bigger picture, the trend of US stock leadership has been ongoing since 2011. The current rally in foreign stocks might just be a temporary bounce in this long-term trend. Only time will tell if this change is here to stay or if US stocks will regain their leading position. Investors are keeping a close eye on this situation. They are using different tools, like ETFs, to track the performance of foreign stocks compared to US shares. This helps them understand the bigger picture and make informed decisions about their investments.