IXUS: International Stocks Now 8 Turns Cheaper Than The S&P 500

The iShares Core MSCI Total International Stock ETF (IXUS) has demonstrated strong performance in 2025, rising 19.5% year-to-date through July 10, prompting an analyst to maintain a 'buy' rating. This bullish outlook is predicated on IXUS's attractive valuation, currently 8 turns cheaper than the S&P 500, alongside its robust momentum, broad international diversification, and favorable technical indicators, suggesting continued upside potential into year-end.

Analysis

The iShares Core MSCI Total International Stock ETF (IXUS) has demonstrated significant strength, delivering a 19.5% total return year-to-date through July 10, 2025, supporting a continued 'buy' rating from the analyst. The core of the bullish thesis rests on a compelling valuation argument, with the ETF trading at a discount of 8 turns relative to the S&P 500. This valuation gap is complemented by strong underlying fundamentals, including broad international diversification, low expense ratios, a higher dividend yield, and a favorable PEG ratio, positioning it as an attractive core holding. From a technical standpoint, IXUS has registered a long-term breakout, indicating sustained bullish momentum. While the analysis acknowledges the potential for near-term headwinds from technical resistance and seasonal patterns, the combination of attractive valuation, solid fundamentals, and positive technical signals underpins a constructive outlook for the ETF through year-end.

Key Decisions for Investors

• Given the ETF's strong performance and favorable valuation, investors could consider initiating or adding to IXUS as a core holding for diversified international equity exposure.
• For portfolios heavily concentrated in U.S. stocks, the 8-turn valuation discount versus the S&P 500 presents a clear opportunity to rebalance capital towards international markets to capture relative value.
• While the long-term technical trend is bullish, investors should remain mindful of potential short-term volatility near noted resistance levels and seasonal weakness, which could offer more attractive entry points.