JPMorgan Strategist Predicts Strong Runway for International ETFs in 2026

International Equity Outperformance Drivers

• 📈 International markets are expected to continue their outperformance trend, driven by more than just a catch-up trade.
• 💰 A key factor is projected dollar devaluation, with an estimated 1% annual decline over the next decade.
• 📊 Valuations in international equities remain compelling, trading at a 32% discount to the US, significantly wider than the 20-year average discount of 19%.

Opportunities in International Markets

• 💡 Financials, energy, and materials are identified as sectors with significant opportunities within international markets.
• 🧩 The compelling valuations in international value stocks are expected to sustain investor interest.

Recommended International ETF

• 🎯 JPMorgan's chief ETF strategist highlights an international value fund with the ticker JIVE (JV).
• 🚀 This fund was a top performer last year and offers low correlation to US large-cap growth, making it an attractive pairing.
• 💰 The fund experienced substantial inflows of approximately $1 billion last year, indicating continued positive momentum.