International Mutual Funds Rally Up to 12% in One Month. Time to Go Global?

The Rising Wave of International Mutual Funds

International mutual funds have caught the eye of many investors lately. In just one month, some funds surged as much as 12%. This jump stands out as a new chance for people to think beyond U.S. markets. While U.S. stocks showed mixed results, international funds, especially those focused on value stocks, outpaced U.S. equities by nearly 11%. Strong gains in places like the UK, Germany, and Ireland have helped fuel this rise. This growth in international mutual funds is more than a momentary spike. It shows that putting money into global markets can pay off. If you want to take advantage of this trend, expanding your investments to include funds that cover different countries might be smart.

Investing in Mutual Funds: Understanding how different types of mutual funds work is key to diversifying globally.

Why International MutualFunds Are Doing Well

Here are some main reasons why these funds have gained so much recently:

1. Value Funds Lead the Way

Value-focused international funds, especially those tied to European markets, performed strongly. Companies like Roche, Allianz, and Barclays helped these funds do well. These stocks belong to sectors that held up better than many U.S. growth stocks during global uncertainty.

2. Developed Markets Pull Ahead

Countries like the UK, Germany, and Ireland posted strong gains. Some funds rose more than 8% in three months in these markets. Their political stability and solid business setups attract global investors.

3. U.S. Market Challenges

U.S. growth stock funds faced headwinds due to tariff questions, tensions between countries, and profit-taking in big tech firms like Nvidia and Tesla. These problems made investors look elsewhere, benefitting international funds.

Market Insights Confirming This Trend

A recent Morningstar article highlights how international equity funds outpaced U.S. equities in Q1 2025, with some posting returns up to 7.8%. Developed markets such as the UK, Germany, and Ireland were top performers – supporting the narrative of international funds’ recent strength. Similarly, BlackRock’s market insights confirm that international equities have outperformed U.S. equities by approximately 11% so far in 2025, particularly in value stocks, reinforcing the benefits of global fund exposure.

Why Go Global With Your MutualFunds?

Adding international mutual funds to your portfolio offers clear benefits:

• Lower Risk: Spreading investments across different countries cuts down the chance of big losses in one market.
• More Opportunities: You can access fast-growing or undervalued sectors in other countries.
• Currency Diversity: Investing abroad gives exposure to foreign money, which can help your returns.
• Value Picks: Many developed markets trade at low prices now, providing good growth chances through value funds.

Explore the Types of Mutual Funds to Understand How International Funds Fit into Your Portfolio Strategy. For an educational overview, NerdWallet’s guide on how to invest in mutual funds thoroughly explains fund types, risks, and diversification strategies — emphasizing why international exposure matters, especially amid recent global fund rallies.

Leading International Mutual Funds to Watch

Some funds have become popular choices during this recent rally:

• Fidelity International Index Fund: Offers wide coverage of developed markets with a focus on value stocks.
• Funds that hold shares in European giants like Roche, Allianz, and Barclays also draw attention.

Financial advisors often recommend these funds for those wanting to ride the wave of global market growth.

What Experts and Communities Say About Going Global

On platforms like YouTube and Twitter, investors and experts discuss international mutual funds more than ever. They often mention:

• Why it’s smart to mix your portfolio with global stocks.
• How international funds can protect against U.S. market ups and downs.
• The long-term gains from strong, value-focused economies in Europe and beyond.

Watch: Investing Basics – Mutual Funds

For those new to mutual funds or looking to understand their global allure, here’s a brief video introduction that explains the fundamentals and benefits of mutual fund investing, including international options.

Investing Basics: Mutual Funds – a simple introduction to mutual funds and how they fit in your investment plans. This buzz shows that 2025 might be the right time to think about growing your investments worldwide.

Should You Start Investing Globally Now?

With international mutual funds climbing 12% in just a month and beating U.S. stocks by 11% this year, the chance to boost your portfolio is clear. Countries with stable politics and value-led growth offer exciting opportunities. If your investments are mostly in the U.S., looking into international mutual funds could be wise. Going global not only reduces risk but also opens doors to fast-growing sectors outside your home country. For additional context, Bankrate’s top-performing mutual funds in May 2025 report shows a mixed environment where international funds offer valuable diversification and potential outperformance compared to many U.S.-focused funds.