Q&A: Foreign stocks

Q: Foreign stocks are setting the pace even after a strong showing in 2025. I don’t want to be left behind like last year. Can you suggest a few stocks or funds?

A: So far in 2026 the popular MSCI EAFE Index, which invests in 21 developed countries outside of North America, is up 7.6%. The S&P 500 Index is up 3.2%.

The Forecasts rarely recommends individual foreign stocks. Instead, we suggest investors own low-cost mutual funds and exchange-traded funds (ETFs). Two funds that caught our eye are members of our recommended fund portfolios — Vanguard International Core Stock ($19; VWICX) and iShares International Small-Cap Equity Factor ($44; ISCF).