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5 International Equity ETFs That Trumped S&P 500 in 1H of 2020

Sanghamitra Saha

The coronavirus pandemic took the global markets in its grip in the first quarter and caused a bloodbath in various global bourses. However, unprecedented stimulus measures by global central banks and governments pulled the ailing global markets very soon from the nadir in the second quarter.

 At the time of writing, there were more than 9,500,000 infected people. Since signs of the second wave of coronavirus look rife at the end of the second quarter, concerns of prolonged economic weakness have strengthened. 

The IMF now estimates a contraction of 4.9% in global gross domestic product in 2020, lower than the 3% decline it predicted in April. Global markets remain subdued in the final days of June. Investors have started to believe that social distancing measures will remain in place during the second half of the year, with economic activity and supply chains being hampered.

Overall, the S&P 500 lost 5.6% in the first half, while all-world iShares MSCI ACWI ETF ACWI retreated about 5.3%. Investors should note that Vanguard FTSE Europe Index Fund ETF Shares VGK nosedived 14.3% in the first half.

Asia ETF iShares Asia 50 ETF AIA was down 1.3%. iShares MSCI Emerging Markets ETF EEM was off 10.1%, First Trust Latin America AlphaDEX Fund (FLN) slumped 34.3% and iShares China Large-Cap ETF (FXI) lost 6%. Against this backdrop, we highlight a few international ETFs that outperformed the S&P 500 in H1.

ETFs in Focus

First Trust Dow Jones International Internet ETF FDNI — Up 37.7%

The underlying Dow Jones International Internet Index is a float-adjusted, market-capitalization weighted index designed to measure the performance of the 40 largest and most actively traded non-U.S. international companies in the Internet industry that are engaged in Internet commerce and Internet services. The fund charges 65 bps in fees.

First Trust International Equity Opportunities ETF FPXI — Up 26.2%

The underlying IPOX International Index is a rules-based, market-cap weighted index that measures the performance of the 50 largest and typically most liquid companies that are domiciled outside the United States within the IPOX Global Composite Index. The fund charges 70 bps in fees.

Amplify International Online Retail ETF XBUY – Up 21.7%

The fund tracks the price performance of the EQM International Ecommerce Index. The index seeks to measure the performance of equity securities issued by non-U.S. companies that derive at least 90% of their revenues from online business transactions or e-commerce platforms. The fund charges 69 bps in fees.

Renaissance International IPO ETF IPOS – Up 19.1%

The underlying Renaissance International IPO Index is a stock market index based on a portfolio of non U.S.-listed newly public companies, prior to their inclusion in global core equity portfolios. The fund charges 80 bps in fees (read: IPO ETFs Breeze Past S&P 500 in 1H: What Next?).

Goldman Sachs MarketBeta International Equity ETF GSID – Up 11.2%

The underlying Solactive GBS Developed Markets ex North America Large & Mid Cap Index consists of equity securities of large and mid-capitalization issuers covering approximately the largest 85% of the free-float market capitalization in developed markets excluding North America. The fund charges 20 bps in fees.

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iShares MSCI Emerging Markets ETF (EEM): ETF Research Reports
 
First Trust International Equity Opportunities ETF (FPXI): ETF Research Reports
 
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
 
Renaissance International IPO ETF (IPOS): ETF Research Reports
 
iShares Asia 50 ETF (AIA): ETF Research Reports
 
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
 
First Trust Dow Jones International Internet ETF (FDNI): ETF Research Reports
 
Amplify International Online Retail ETF (XBUY): ETF Research Reports
 
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