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International developed markets outperform US in 2026 with dividend ETFs offering rising income.

Market News
08 Jun 2026
24/7 Wall Street
View Source
Bullish
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In 2026, international developed markets have outperformed the US stock market, driven by sectors like European financials and Japanese industrials that offer higher dividends and lower valuations than US mega-caps. Three ETFs—Amplify CWP International Enhanced Dividend Income (IDVO), Schwab Fundamental International Large Company Index (FNDF), and Avantis International Equity (AVDE)—provide different approaches to capture this trend through dividends and income strategies. IDVO uses an options overlay for monthly income, FNDF applies a fundamental value tilt with low costs, and AVDE offers a multi-factor active strategy including smaller caps. Currency effects have boosted returns for US investors due to a weaker dollar. Investors should choose based on income needs and risk tolerance, noting that rising dividends and market gains have combined to enhance returns in these funds so far in 2026.

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