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Use these market charts to support your conversations with clients about asset-allocation opportunities.

International equities offer potential opportunities for 2026

December 19, 2025

Contrary to what some of your clients might expect, the U.S. hasn’t been the best performing developed stock market since before 2010.

Chart showing international stock market performance

Key takeaways:

  • The S&P 500® index returned 25% or more in 2021, 2023, and 2024, and has returned more than 15% YTD through the end of October. So, it’s understandable if your clients have been primarily focused on the U.S. stock market.
  • Yet as this table illustrates, the best performing developed stock market for each of the past 15 years hasn’t been the U.S. Instead, a developed international stock market has consistently earned that prize year after year.
  • With the U.S. economy lukewarm, the labor market cool, consumer sentiment weak, and the Federal Reserve divided over the outlook for interest rates, international stocks might be worth talking with your clients about when exploring opportunities for 2026.
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FNDF

Schwab Fundamental International Equity ETF

SCHY

Schwab International Dividend Equity ETF

SWISX

Schwab International Index Fund

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Sources: Schwab Center for Financial Research®; Morningstar, Inc. Data as of 10/31/25. *Returns for 2025 are year to date through October 31. Based on developed markets as designated by MSCI®. Each market, except the U.S., is represented by annual total returns of the MSCI country index and is net of taxes. The S&P 500® index represents the U.S. market’s annual total returns. Returns assume reinvestment of dividends and interest. All returns are in U.S. dollars. Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. For additional information about the indices and terms shown, please visit www.schwabassetmanagement.com/resources/glossary.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.

Diversification does not ensure a profit and does not protect against losses in declining markets.

The Schwab Center for Financial Research® is a division of Charles Schwab & Co., Inc. Articles attributed to SCFR are the opinions of employees of Charles Schwab & Co., Inc., Member SIPC and may not reflect the views of Schwab Asset Management.

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