International equities have fallen by the wayside for quite a while now, with many investors choosing to focus on U.S. companies instead.
However, global equity strategies could return to being in favor soon. Reuters noted that UBS Global Wealth Management has recently raised its stance on global equities to “attractive.”
The Reuters report cites a number of factors driving that decision from UBS. In particular, monetary policy from some of the major central banks, along with sustained growth from the U.S. and mounting momentum in AI, are driving enthusiasm back to international equities.
According to Reuters, UBS analysts foresee that more stimulus packages from China could further elevate the global market. Meanwhile, stronger labor data and sinking inflation numbers continue to inspire confidence in both developed and emerging markets.
Investors can tap into more benefits from global equities than just growth potential. Allocating assets to other countries helps mitigate portfolio correlation to the U.S. market. This can be especially beneficial during times of unease in the United States, such as the upcoming presidential election.
Access the Calvert Strategy
For investors looking to build up international exposure, the Calvert International Responsible Index ETF (CVIE ) offers a good means to do so. The fund offers capital appreciation through a portfolio of global companies with a focus on strong performance and sustainability.
Focusing on companies with more responsible business models can give CVIE significant advantages. These factors, such as resource efficiency and transparency, can be highly desired qualities for shareholders. Additionally, these companies can potentially be in a better position to benefit from climate-friendly legislation down the line.
CVIE’s stock selection gives the fund diversified access to countries around the globe. In particular, the ETF holds stronger exposure toward Japan, the United Kingdom, Canada, and France. This allocation enables CVIE to particularly tap into the economic recovery of these countries while still maintaining a global outlook.
Investors who have already opted for CVIE have seen strong long-term results. As of Oct. 28, 2024, CVIE’s NAV has risen 28.9% over the last year, over 2% higher than the MSCI World ex-USA Index.
For more news, information, and analysis, visit The ETF Yield Channel.
