With the brutal returns of 2022 almost behind investors, those looking to make up lost ground might do better to look abroad next year.

Some strategists see a better set-up for foreign stocks than their U.S. peers, a change from the recent past, when investors were rewarded for staying close to home. Over the past five years, the iShares MSCI ACWI ex U.S. (ACWX) exchange-traded fund lost an average annual 1.8%, compared with the average 7% gain for the SPDR S&P 500 ETF (SPY).


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