--- title: "The International ETF for Investors Looking Beyond U.S. Stocks" type: "News" locale: "en" url: "https://longbridge.com/en/news/285819853.md" description: "The Invesco S&P International Developed Momentum ETF is outperforming the S&P 500 and Russell 1000, with an 8% year-to-date return and a five-year average annualized return of 16.2%. It invests in momentum stocks from developed international markets, primarily in Europe and Asia. The ETF's top holdings include HSBC Holdings, Toronto-Dominion Bank, and Banco Santander. Analysts suggest continued strength in international markets due to attractive valuations and other growth trends, making this ETF a strong option for portfolio diversification." datetime: "2026-05-09T18:55:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285819853.md) - [en](https://longbridge.com/en/news/285819853.md) - [zh-HK](https://longbridge.com/zh-HK/news/285819853.md) --- # The International ETF for Investors Looking Beyond U.S. Stocks ## Key Points - The Invesco S&P International Developed Momentum ETF invests in momentum stocks from developed international markets. - The ETF is beating the S&P 500 and the Russell 1000 year to date. - It has one of the best five-year track records among international ETFs. - 10 stocks we like better than Invesco Exchange-Traded Fund Trust II - Invesco S&P International Developed Momentum ETF › International stocks have generally outperformed U.S. stocks this year, continuing the outperformance trend from last year. And some leading strategists expect continued strength in international markets driven by attractive valuations, a weakening dollar, defense and infrastructure spending, and other growth trends. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ The glow up for international stocks makes them an attractive option for portfolio diversification. A great way to diversify internationally is through an exchange-traded fund (ETF) that invests in only stocks from foreign markets. While there are dozens of solid options, one of the absolute best international ETFs out there is the **Invesco S&P International Developed Momentum ETF** (NYSEMKT: IDMO). Image source: Getty Images. ## Riding the momentum The Invesco S&P International Developed Momentum ETF tracks the **S&P World Ex-U.S. Momentum Index**. That portfolio consists of about 192 international stocks from developed markets with the highest momentum scores within the larger **S&P World Ex-U.S. Index**, which tracks about 1,000 large-cap and mid-cap international stocks. The momentum stocks in the portfolio are those with better recent performance and upward price movements than other stocks in the larger index. So, at all times, the ETF strives to hold the stocks that are outperforming. The portfolio is composed mostly of stocks from developed European and Asian nations (except Korea, which is excluded), along with the U.S. Japanese stocks comprise 22% of the fund, followed by Canada at 16% and the U.K. at 13%. Spain represents 10% of the stocks, while Germany makes up 8%. The three largest holdings are **HSBC Holdings,** based in London, **Toronto-Dominion Bank**, based in Canada, and **Banco Santander,** based in Spain. ## Built to outperform The ETF is designed to outperform, based on its momentum structure, and it has done so. This year, IDMO is up about 8% year to date, which is slightly better than the 7% return for the **S&P 500**. Over the long term, it has been one of the best-performing international ETFs. It has a five-year average annualized return of 16.2%, which is among the best in its class of global ex-U.S. ETFs. The Invesco S&P International Developed Momentum ETF's five-year performance even beats both the **Russell 1000** and the S&P 500. Over the past five years, the Russell 1000 has averaged about a 12.6% annualized return, while the S&P 500 has averaged a roughly 13.4% annualized return over that stretch. There are a lot of good international ETFs out there, but you'll have a hard time finding a developed market international ETF that has performed better than IDMO over the longer term. ## Should you buy stock in Invesco Exchange-Traded Fund Trust II - Invesco S&P International Developed Momentum ETF right now? Before you buy stock in Invesco Exchange-Traded Fund Trust II - Invesco S&P International Developed Momentum ETF, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Invesco Exchange-Traded Fund Trust II - Invesco S&P International Developed Momentum ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $471,827**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,319,291**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of May 9, 2026._ _HSBC Holdings is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [TD.US](https://longbridge.com/en/quote/TD.US.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [BNC.UK](https://longbridge.com/en/quote/BNC.UK.md) - [SAN.US](https://longbridge.com/en/quote/SAN.US.md) - [HSBH.US](https://longbridge.com/en/quote/HSBH.US.md) - [IDMO.US](https://longbridge.com/en/quote/IDMO.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md) - [IWB.US](https://longbridge.com/en/quote/IWB.US.md) - [IWF.US](https://longbridge.com/en/quote/IWF.US.md) - [GVUS.US](https://longbridge.com/en/quote/GVUS.US.md) - [VONE.US](https://longbridge.com/en/quote/VONE.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) ## Related News & Research - [Santander US Survey Finds Resilient Consumers in Need of Vehicles, Used-Car Demand Persists | SAN Stock News](https://longbridge.com/en/news/286291166.md) - [Banco Santander to acquire Webster in two-step transaction valued at $75.00 per share](https://longbridge.com/en/news/286822227.md) - [Universal Digital Inc. 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