While we hope US stocks continue to perform well, history suggests that international stocks may soon have their day in the sun. Since 1974, the outperformance cycle for US versus international stocks has lasted an average of 7.7 years. We’re currently 9.8 years into the current cycle of US outperformance, which suggests the tides may be getting ready to turn.
US Equity vs. International Equity 5-Year Monthly Rolling Returns (1/1/1974-12/31/2020)
The chart shows the values of the S&P 500 Index’s returns minus the MSCI World ex USA Index’s returns. When the line is above 0, domestic stocks outperformed international stocks. When the line is below 0, international stocks outperformed domestic stocks.
Data Sources: Morningstar and Hartford Funds, 1/21.
Past performance does not guarantee future results. The performance shown above is index performance and is not representative of any Hartford Fund’s performance. Indices are unmanaged and not available for direct investment.
US equity is represented by the S&P 500 Index; International equity is represented by the MSCI World ex USA Index. Please see below for representative index definitions. For illustrative purposes only.
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Hartford Funds Global and International Equity Funds*
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S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
MSCI World ex USA Index captures large- and mid-cap representation across developed market countries, excluding the US.
Important Risks: Investing involves risk, including the possible loss of principal. • Foreign investments may be more volatile and less liquid than US investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.