These are the best ETFs to play the boom in international stocks, Bank of America says

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International stocks have outperformed the U.S. by more than 4% this year, according to Bank of America.

International stocks are off to a hot start in 2023, with the U.K.'s FTSE 100 hitting an all-time high and China's reopening boosting Asian markets, prompting Bank of America to look at which ETFs benefiting from the trend are solid long-term investments. International equities have outperformed their U.S. counterparts by more than 4%, but investors should choose carefully, said Jared Woodard, investment and ETF strategist at Bank of America, in a note to clients on Monday.

Dividends and other sources of income have been a hot area for investors since last year, when inflation moved and interest rates rose sharply. The GCOW ETF has a 30-day SEC yield of more than 5%. And while China has been the source of some of the outperformance for international stocks in 2023, many investors are still cautious about being too exposed to the country, due to regulatory and geopolitical risks. That could make funds like the iShares MSCI ex-China ETF attractive.

 

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