2025 Year-To-Date Market Performance: International Markets Lead

This analysis is based on the Seeking Alpha article [1] published on 2025-12-01, which highlighted international markets as the year’s standout performers so far. Supporting data [0] shows that EFA (international developed markets) has gained 25.75% YTD, while VWO (emerging markets) is up 23.44%. These returns surpass the U.S. S&P 500’s YTD gain of 16.02%.

Within the U.S., large-cap tech has led domestic performance: the NASDAQ Composite is up 20.42% YTD, and XLK (Technology Select Sector SPDR Fund) has risen 22.13%. On 2025-11-30, the energy sector was the top daily performer, gaining 1.17%, but its YTD return of 4.74% remains relatively weak compared to tech and international markets.

Additionally, momentum/growth strategies have outperformed value strategies in the U.S. YTD, while international value strategies lead among international segments [0].

1. International Market Dominance
   : The YTD outperformance of EFA and VWO over U.S. indices indicates a shift in market leadership beyond U.S. equities [0][1].
2. U.S. Tech Resilience
   : Despite broader U.S. market underperformance relative to international markets, large-cap tech remains a strong growth driver [0].
3. Energy Sector Divergence
   : The energy sector’s recent daily gain contrasts with its weak YTD performance, suggesting potential short-term volatility or a possible turnaround signal [0].
4. Strategy Performance Differences
   : The gap between momentum/growth and value in the U.S., and the leadership of international value, highlights varying sector and regional dynamics [0].

• Opportunities
  :
  • International markets (EFA, VWO) present ongoing growth opportunities given their strong YTD performance and leadership [0][1].
  • U.S. large-cap tech (XLK, NASDAQ) continues to offer potential for investors seeking exposure to high-growth sectors [0].
• Risks
  :
  • The energy sector’s weak YTD performance, despite a recent daily gain, poses risks for investors focusing on that segment [0].
  • Volatility could arise from potential shifts in market leadership between U.S. and international markets [0].
  • The performance gap between growth and value strategies may narrow or reverse, impacting portfolio returns [0].

• International YTD Performance
  : EFA (+25.75%), VWO (+23.44%) [0]
• U.S. YTD Performance
  : S&P 500 (+16.02%), NASDAQ Composite (+20.42%), XLK (+22.13%) [0]
• Sector Highlights
  : Energy (+1.17% on 2025-11-30, +4.74% YTD) [0]
• Strategy Performance
  : U.S. momentum/growth > U.S. value; international value leads [0]
• Market Leadership
  : International markets > U.S. markets; U.S. tech > other U.S. sectors [0][1]

This summary provides objective market context without prescriptive investment recommendations.