It’s no secret that international equities have served as a valuable balm amid bouts of U.S. uncertainty this year. Global equity strategies have provided many portfolios with a significant source for returns through 2025, even in moments when U.S. markets have faltered. However, some investors may be wondering whether, looking forward, they should still remain as engaged with the global market.
After all, international equities are still facing a few headwinds. Back-and-forth tariff negotiations continue to affect the valuations of companies across the globe. Meanwhile, supply chains could face significant disruptions from ongoing geopolitical uncertainties.
This is all happening while U.S. equities, particularly dominant large-cap names, continue to post strong results. Even amid uncertain macroeconomic conditions, many large-cap tech giants continue to deliver attractive returns, buoyed by growing demand for AI and semiconductors. And with the Federal Reserve now trimming interest rates, U.S. equities across the cap spectrum are poised to benefit.
However, it’s still far too soon to be backing out of international equities just yet. Instead, advisors and investors should look to pair their U.S. exposure with international equities to diversify and access additional avenues for stronger returns.
Tackle International Equities Via Active ETFs
When it comes to building international exposure, it can pay off to turn to active management. The flexibility of active management can prove itself to be especially valuable when navigating changing geopolitical conditions across a variety of different markets.
As an example, check out the BNY Concentrated International ETF (BKCI ). This is an actively managed fund that maintains a tightly concentrated portfolio of international equities.
When selecting stocks to add to its portfolio, BKCI focuses on fundamentals. The ETF’s portfolio team examines each potential company across a variety of different factors, be it financial or nonfinancial.
The end result is a portfolio with a very well-distributed sector allocation. As of October 31, 2025, BKCI’s stocks are spread across a variety of sectors, but hold a stronger tilt toward information technology, healthcare, consumer discretionary, and industrials.
Typically, BKCI looks to hold somewhere between 25 to 30 companies. This can prove highly beneficial when navigating the complex field of international equities. A tighter portfolio of high-conviction stocks can be easier to monitor than a broader equity strategy, which could require more turnover.
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