If you look at a table of best returning equity markets over the past 3-, 5- , 10-year and longer horizons, it is impossible to ignore the amazing outperformance of the S&P 500. I have commented on this fact many times in my blog posts over the last few years. In fact, I have often lamented that this amazing string of good fortune for the S&P 500 has hurt every portfolio that chose to diversify away from it!
This year, however, we have seen a persisting trend of outperformance from markets outside the U.S.! Per the table below, you can easily see the longer term strength of the S&P 500 (IVV), but also note how strong international and emerging market equities have done so far year-to-date in 2025!
Most of the longer term outperformance in the S&P 500 is from the amazing performance of large growth (IVW) that was comprised primarily of technology (XLK) while large value (IVE) pulled returns down. Tech and large growth have been less of a factor recently after their phenomenal run.
Most all D&A client portfolios have some exposure to international and emerging market equities. However, because those markets are historically more risky, D&A typically underweights them in favor of more U.S. equity exposure. D&A will maintain good allocations to global markets consistent with our belief in globally diversified portfolios to help clients achieve their goals.