Global ETFs Hovering Around Record Levels as Markets Show Strength in Early 2026

International equity markets have delivered impressive returns to start 2026, extending the momentum from the previous year. The iShares MSCI ACWI ex US ETF (ACWX) has risen 3.6% year-to-date, significantly outpacing the SPDR S&P 500 ETF Trust (SPY) with its 0.9% gains. The iShares MSCI Emerging Markets ETF (EEM) jumped 5% in the same period as of late January. With multiple country-focused ETFs now hovering near their 52-week highs, investors are witnessing a broad-based rally across developed and emerging markets that reflects strengthening economic conditions and shifting policy expectations globally.

International Markets Sustain Momentum with Multiple ETFs Near Peak Prices

The confluence of favorable macroeconomic trends and policy adjustments has propelled country ETFs to the upper end of their trading ranges. Several nations’ equity markets are hovering just below or at their highest levels of the past year, signaling investor confidence in their economic trajectories. This phenomenon reflects not just short-term trading flows, but underlying fundamental shifts—from rate-cutting cycles beginning in some economies to technology-driven growth stories reshaping others. The breadth of this strength across geographies suggests that global capital is actively redeploying toward opportunities previously underweighted.

Norway and Turkey Lead: Energy Support and Inflation Easing Drive Gains

Norway’s equity market has demonstrated resilience, with both the iShares MSCI Norway ETF (ENOR) and Global X MSCI Norway ETF (NORW) hovering near their 52-week peaks. The iShares version traded at $30.82 as of late January—marginally below its $30.86 high—while NORW hovered at $31.93, just shy of $31.97. Norges Bank’s steady policy rate at 4.00% has set the stage for anticipated rate reductions in mid-2026, which should provide support to domestic equities. Simultaneously, elevated Brent crude prices around $65 per barrel continue to benefit Norway’s energy-heavy economy, underpinning the strong performance of heavyweight sectors.

Turkey’s equity market has emerged as another standout performer in early 2026. The Turkey iShares MSCI ETF (TUR) hovered near $39.40 on January 23, just below its $39.44 52-week high. The primary catalyst has been a significant deceleration in the nation’s inflation rate, which slowed to 30.89% in December 2025 from 31.07% the previous month—undershooting market expectations and marking the lowest reading since November 2021. This progress has reinforced confidence in Turkey’s Central Bank rate-cutting cycle, encouraging investors to increase exposure to the country’s equity markets.

Asian Markets Shine: South Korea’s Tech Leadership and Japan’s Political Optimism

South Korea’s stock market has surged to record highs, with country-specific ETFs hovering near their peak valuations. The iShares MSCI South Korea ETF (EWY) traded at $117.99 on late January, marginally below its $118.41 52-week high, while the Franklin FTSE South Korea ETF (FLKR) hovered at $38.66, just shy of $38.75. The KOSPI index’s impressive rally has been driven primarily by a semiconductor boom, particularly surrounding heightened global demand for AI chips and optimism regarding HBM4 memory technology. December export data showed robust growth that further validated investor enthusiasm for the country’s technology sector.

Japan’s Small-Cap market has participated in the broader rally, with the iShares MSCI Japan Small-Cap ETF (SCJ) hovering near its 52-week peak of $96.78 at $96.66 as of late January. Japanese equities have climbed to record highs amid anticipation surrounding political developments. Prime Minister Sanae Takaichi, operating from a position of high public approval, dissolved the lower house of parliament on January 23 to pursue early elections scheduled for February 8. Markets are pricing in the potential for aggressive fiscal stimulus, including elevated defense spending and tax relief measures aimed at accelerating economic growth. This political tailwind has coincided with the Japanese central bank’s upgraded economic forecasts—now expecting 0.9% growth for fiscal 2026 (up from 0.7%) and 1.0% growth for fiscal 2027 (raised from 0.7%)—further bolstering investor sentiment toward Japanese equities.

The broader picture reveals that country ETFs hovering at multi-year highs reflect genuine shifts in economic fundamentals and policy frameworks. Whether driven by commodity support, inflation relief, technological dominance, or political commitment to growth, each market tells a story of renewed investor confidence in its medium-term prospects.