International equities have struggled to capture investor enthusiasm in recent years. Over the decade ending 12/31/2024, the S&P 500® Index notched a robust 13.1% annualized return, dwarfing the modest 4.8% return of the MSCI ACWI ex USA Index. Against this backdrop, U.S. equity exchange-traded funds (“ETFs”) captured 87% of all equity ETF net inflows in 2024. While international stocks account for nearly half the world’s equity market cap, the average U.S. investor allocates just 8% to international stocks, according to a recent survey. However, the first quarter of 2025 showed signs that the tide may be turning for international equities, as the MSCI ACWI ex USA Index climbed 5.4%, while the S&P 500® Index shed 4.3%. Below we explore some of the factors that fueled this outperformance and discuss why we think many investors may benefit from revisiting international allocations. We then highlight two unique actively-managed international ETFs: the First Trust WCM International Equity ETF (WCMI) and the First Trust WCM Developing World Equity ETF (WCME).

To continue reading, click here.