Stocks began to spread across the circle from April lows, and now all losses have been recovered. For investors who have long been unwarranted to be overexposed to U.S. stocks, especially dominant in a handful of technology stocks S&P 500a rebound in the portfolio is a great opportunity to do things many people have overlooked in the past: diversifying into international stocks and other asset classes.
"You got a gift from the market," said David Schassler, Vaneck's head of multi-asset solutions, in last week's "ETF Edge."
“We want to see people diversify internationally, diversify internationally, especially gold, and if you like gold, diversify it into bitcoin as well,” he said.
Some investors have received information in early 2025 as the January-April period leaves stocks in most major markets around the world. Vanguard's International Stock Index ETF (VXFor example, net inflows this year exceeded $6 billion, according to ETFACTION.com. But to see this, Vanguard's S&P 500 ETF (flight) Now, inflows this year are over $63 billion.
In fact, VOO is working to eliminate the record of annual inflows set last year.
Investors who buy U.S. stocks are rewarded, ETF experts say those who stick to the 500-high tilt and don’t like the April drag experience should use this opportunity to view portfolio balances. "If your portfolio is primarily us (stocks), we want to see your diversity in international and emerging markets," Shasler said.
From Warren Buffett to Jack Bogle of Vanguard Group, investing in recent idols, broadcasting a message that long-term focus on U.S. stocks is the best choice. Bogle, in particular, often says that the S&P 500 multinational cosmetics themselves can provide a large amount of overseas revenue. But even Buffett has been illuminating some of the U.S. big market positions, while increasing his recent bet on Japan.
“We’re not anti-American, but just saying that if you’re mainly investing in the U.S., you might want to invest outside, too,” Shasler said.
For experts saying this is a good time to ensure proper diversification of portfolios, the S&P 500 valuation remains a major concern. Shasler believes that with the gains of stocks, the prices in the U.S. market are rich.
He added that even after the U.S.-China temporary trade armistice, the risk remains higher than historical benchmarks. "We are not calling recession, but the risks are high," he said on "ETF Edge."
He added that the price-to-earning ratio of U.S. stocks enhance the message that “there is a lot of value overseas”.
Shasler believes that major changes in global government policies are also a secondary catalyst for more diversification. He said that as the world becomes increasingly forked and countries are forced to move forward on their own and drive their own growth, investors are in the context of favoring the growth of the lower valuation international stock market.
Vettafi research head Todd Rosenbluth said on ETF Edge that this year showed more investors embracing international diversification, although he added that we “haven’t seen it completely” in the market. He also said investors should use this moment to pay attention to the concentration of U.S. stock holdings.
“The liquidity has certainly been in favor of the U.S., and investors are buying dips,” Rosenbruce said. “We have seen a stronger rebound in growth stocks, in these technologies and consumer discretion-oriented areas.”
iShares S&P 500 Growth ETF (IVW) has grown nearly 18% over the past month, while the iShares S&P 500 value ETF (IAccording to ETF action,) grew by about 8%.
IVW has a P/E ratio above 33, while IVE has a P/E ratio of 21.5.
Rosenbluth said a good way to deal with valuation and concentrated risks in the U.S. portfolio is to invest in "quality" stock funds, for example, than the entire S&P 500, such as the VictoryShares free cash flow ETF.
"We probably can't see this rally continuing to be on the growth side, so you want to keep a balance in your portfolio," Rosenbruce said.
Both ETF experts say that as global trade sentiment improves, investors should see China and India as part of any international diversification plan.
Shasler said China is actively stimulating its economy and India is one of the best growth stories in the world, just like China 20 years ago. "It makes sense to have contact between China and India," he said.
RosenbluthForbes), but he describes this momentum as "fading" now.
Rosenbluth said KWEB is still a good choice for investors interested in China in this environment, as it remains one of the growth-oriented ETFs centered around China and is unlikely to be negatively affected by Chinese tariffs. This is a "China-only" story, not a broader Chinese equity fund with multinational operations. According to ETF Action, KWEB has grown 14% in the past month, with its traffic approaching $100 million in the past week, while its net outflow exceeds $800 million.
In India, investors have a variety of options, including the iShares MSCI India ETF (Wherever), and Van Eck's Digital India ETF (DGIN).
Shasler said India's structural growth story is the reason for investment. “You have a large population, tech savvy, well-educated, and the government is supporting the economy, so everything is going on there for growth stories,” he said.