International stocks are ahead of the U.S. so far this year—how to add them to your portfolio

For investors, the U.S. has been the place to be in recent years.

Over the past decade and a half, the S&P 500 — a measure of the broad U.S. stock market — has returned an annualized 14.2%. The MSCI ACWI ex-USA index, which measures the performance of stocks from pretty much everywhere else, logged a return of 6.5% over the same period.

Since the start of 2025, however, investors are eschewing U.S. stocks in favor of international names. So far this year, the ACWI ex-USA index has returned 15.7%, trouncing the 1.5% return in the S&P.

“In 2025 thus far, there are some clear indications that investors are adopting the ‘ABUSA’ (‘Anywhere But the USA’) mindset,” says David Rosenstrock, a certified financial planner and director of financial planning and investments at Wharton Wealth Planning.

“This shift is partly driven by concerns over market volatility in the U.S., uncertainty regarding policies and relatively weaker performance compared to global counterparts,” he says.