Major equity indices are off to a strong start in 2026; however, international equities continue to be a strong theme.
Earlier this week, we discussed in our weekly rundown video the major equity indices and their respective returns so far in 2026. Click here to watch. Major equity indices are off to a strong start in 2026; however, international equities continue to be a strong theme. Year-to-date, the international emerging markets representative EEM is up over 5%. The fund continues to build on its impressive 30% gain in 2025.
A benefit of using multiple tools on the Dorsey wright research site is the fact that you can cross check multiple tools to help build a case for areas of strength/areas of weakness. The Emerging Markets Diversified group on the asset class group scores page ranks 6th among all groups (134 in total), placing it above the 95th percentile of groups on the page. This ranking is higher than the S&P 500 Index Funds group, which currently rank 16th on the asset class group scores page. Additionally, when looking at our DALI asset class rankings, international equities remain firmly in the 2nd position. Although the group still trails domestic equities by 17 signals, international equities have gained 17 signals since the beginning of Q4 last year, highlighting clear improvement in recent months.
Given the fact that international equities representing such a broad group, gaining exposure in the group through ETFs provide a strong diversification benefit. The iShares MSCI Emerging Markets ETF (EEM) provides exposure to large- and mid-cap stocks in developing countries like Asia, Latin America etc. The fund completed a double top break at $57, marking its third consecutive buy signal. EEM also reached an intraday high above $58 on Thursday (1/15), marking a new all-time high for the first time since early 2021. EEM maintains a strong fund score of 5.55, with a positive score direction of 1.33. Additionally, the fund offers a yield of over 2.2%. The weekly OBOS indicates that the stock is in overbought territory, so wait for the 10-week trading band to normalize before considering. Initial support is at $53, with additional support at $48.
