U.S. stock indices have reached new highs, driven by strong corporate earnings, especially in technology. Meanwhile, many non-U.S. stocks have lagged so far in 2024. For instance, the iShares MSCI ACWI ETF (NASDAQ:ACWI), heavily weighted towards U.S. equities, has gained 15% year-to-date (YTD), while the iShares MSCI ACWI ex U.S. ETF (NASDAQ:ACWX), focusing on global stocks excluding the U.S., returned 10%.
Looking ahead, potential headwinds such as mixed economic indicators, Federal Reserve policy shifts and geopolitical tensions could mean short-term glitches on Wall Street. The upcoming U.S. presidential election also adds another layer of uncertainty. Thus, having exposure to international stocks could help mitigate risks from U.S. market volatility.
With that in mind, here are two global stocks and an exchange-traded fund (ETF) that provide exposure to international equities for portfolio diversification by offering opportunities in expanding economies and emerging markets.
GigaCloud Technology (GCT)
First on our list of global stocks is GigaCloud Technology (NASDAQ:GCT). The Hong Kong-based company operates a global business-to-business (B2B) marketplace for big and bulky products. Launched in January 2019, GCT started with furniture and expanded into home appliances, fitness equipment and pet products.
In May, GCT reported stellar first-quarter 2024 results. Revenues hit a record $251.1 million, up 96.5% from last year. Adjusted diluted EPS jumped 71.4% year-over-year (YOY) to 84 cents. The company also saw a 124.7% surge in gross profit and increased gross margin to 26.5%, demonstrating improved efficiency and profitability.
GigaCloud has been rapidly growing, with more active sellers, buyers and higher spending per buyer. A 64% YOY increase in its Marketplace Gross Merchandise Value (GMV) highlights the company’s strong B2B e-commerce position and growth potential. Strategic investments in fulfillment infrastructure, like the recent expansion of its global network to over 10 million square feet, enhance its capacity. The new Branding-as-a-Service (BaaS) program also strengthens seller competitiveness and boosts user engagement.
So far in 2024, GTC stock has gained 63%. Yet, it is still reasonably valued at 10 times forward earnings and 1.5 times sales. Analysts are bullish on GCT stock, with a 12-month median price forecast of $46.00, indicating over a 51% potential upside.
iShares International Select Dividend ETF (IDV)
For broader global stock exposure with lower individual stock risks, an ETF like the iShares International Select Dividend ETF (BATS:IDV) could be a viable option for some of our readers. This ETF focuses on high dividend-paying equities in non-U.S. developed markets. It provides stable income in low-rate environments while mitigating risks from U.S. market fluctuations.
IDV was launched in June 2007. Currently, it holds 101 stocks, with the top 10 holdings comprising 30% of its nearly $4.2 billion net assets. The fund has significant allocations to financials (31.3%), utilities (16.4%) and communication sectors (11.5%).
Geographically, the U.K. (23.8%) leads, followed by Italy (10.2%), Spain (8.7%), France (7.8%) and Canada (7.5%). Among the top holdings are the U.K.-based telecommunications group BT (OTCMKTS:BTGOF) and financial heavyweight NatWest (NYSE:NWG), Hong Kong-based CK Hutchison (OTCMKTS:CKHUY) and Canadian company Manulife Financial (NYSE:MFC).
So far in 2024, IDV has returned over 4%, boasting a generous 6.7% dividend yield. Meanwhile, investors should note the expense ratio of 0.51%. Currently, IDV’s trailing price-to-earnings (P/E) and price-to-book (P/B) ratios stand at 9x and 0.96x, respectively. With a diverse portfolio of high-quality international companies and a strong track record, IDV presents a reliable hedge against domestic market volatility.
Novartis (NVDS)
Concluding today’s discussion on global stocks, we explore Novartis (NYSE:NVS). The Swiss multinational pharmaceutical corporation is known for its robust market position, diversified product portfolio and significant investments in research and development. That makes Novartis a stable global stock option with growth potential amid market choppiness.
In the first quarter of 2024, Novartis reported impressive financial results. Revenue grew to $11.9 billion, up 11% YOY in constant currency terms. Core EPS also rose by 16.9% YOY to $1.80, driven by higher net sales and core operating net income. The company raised its full-year 2024 sales guidance to high single to low double-digit growth, reflecting strong performance across key brands and geographies.
Novartis is pushing forward with its pipeline, highlighted by promising Phase III results for remibrutinib in treating chronic spontaneous urticaria. Its cancer treatments, including Pluvicto, Kisqali and Scemblix are expanding their applications. Furthermore, the pending acquisition of MorphoSys (NASDAQ:MOR) is set to bolster its oncology portfolio, solidifying its strategic market position.
Since January, NVS stock has advanced almost 11% and offers a 3.4% dividend yield. The shares are trading at 15 times forward earnings and 4.8 times sales. Finally, analysts have a 12-month median price target of $116.00 for Novartis stock, a 3.8% upside potential from the current levels.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.