'Nearly every investor' could benefit from adding international stocks, expert says—here's why

The S&P 500 — a measure of the broad U.S. stock market — returned nearly 18% in 2025, the index’s third straight year of double-digit gains.

For the first time since 2022, however, the stocks from the rest of the world did even better. The MSCI EAFE Index, which tracks international stocks from developed nations, posted a return of roughly 32% last year, and the MSCI Emerging Markets Index, which tracks stocks from developing economies, posted a 34% return.

With both indexes leading the S&P so far in 2025, it may be worth examining what role international stocks currently play in your portfolio.

“Nearly every investor that we speak to could probably benefit from adding some international allocations,” Kristy Akullian, head of iShares investment strategy for the Americas at BlackRock, recently told CNBC Make It.

It’s not just a matter of investing in what’s done well recently. Rather, after years of domestic stocks crushing their international rivals, many investor portfolios are heavily tilted toward U.S. names. Upping your exposure to international stocks may be a smart way to even things out, Akullian says.