Displaying items by tag: global equities

Global equity ETFs are gaining attention as investors seek cost-effective exposure to international stocks, even as 2025’s first half brought mixed results amid resilient earnings, easing inflation, and rising geopolitical risks. 

European-domiciled global large-cap blend ETFs pulled in €30 billion between January and May, reflecting a surge in popularity over the past year. Morningstar analysts screened 152 funds in this category, identifying 16 passively managed ETFs with Silver Medalist Ratings based on their high long-term performance potential. 

Among the largest are the iShares Core MSCI World UCITS ETF (EUNL), Vanguard FTSE All-World UCITS ETF (VWRL), and Xtrackers MSCI World UCITS ETF (XDWL), all of which delivered solid one-year returns despite modest year-to-date declines. These ETFs track broad global benchmarks and, in some cases, outperformed them slightly over the past year. 

Finsum: For investors looking to diversify beyond U.S. markets, these highly rated global funds offer a straightforward, low-cost entry point.

Global stocks are anticipated to recover from recent market turmoil and gain modestly in the coming months, driven by expectations of forthcoming interest rate cuts by major central banks, according to a Reuters poll of over 150 equity strategists.

Despite a sharp decline in early August due to the unwinding of leveraged positions and weaker U.S. jobs data, the MSCI global index has regained most of its losses, now up 14% for the year. Analysts expect corporate earnings to outperform in local markets, supporting further growth in key equity indices, though at a slower pace compared to last year. 

While 13 of 15 major indices are forecasted to post single-digit gains by year-end, with no outright global correction anticipated, the pace of gains in 2024 is expected to moderate, reflecting a tempered outlook amidst a resilient macroeconomic picture.

Finsum: We’ll monitor how exchange rates fluctuate as inflation normalizes across countries.