From 17 August 2001 to 10 November 2026, US stocks beat developed-market international stocks by 3.15 percentage points a year. SPY (the S&P 500 ETF, an exchange-traded fund that holds the largest US companies) earned 9.61% a year with dividends counted. Each yearly figure is the single yearly return that turns a start into an end. EFA (the iShares ETF of companies in rich countries outside the US and Canada) earned 6.46% a year.
The lead moved over time. EEM (the iShares ETF of companies in faster-growing, less established economies) earned 9.51% a year from 11 April 2003 against 11.56% for SPY. International funds led to 2009, but the US led the 2010s and the 2020s so far. In 2025, both international funds beat SPY. We wrote this on 11 November 2026, with prices to the close of 10 November 2026.
Are international stocks better than US stocks? Neither side wins every period. Since 2001 against developed-market international stocks (EFA) and since 2003 against emerging-market stocks (EEM), US stocks (SPY) earned more a year. International stocks led from 2004 to 2009.
From 17 August 2001, SPY earned 9.61% a year and EFA earned 6.46%. From 11 April 2003, SPY earned 11.56% a year and EEM earned 9.51%.
From 2004 to 2009, EEM earned 16.46% a year and SPY earned 2.04%. From 2010 to 2019, SPY earned 13.44%, EFA 5.42%, and EEM 2.90%.
EFA beat SPY in 11 of 24 calendar years. EEM beat SPY in 9 of 22. Both beat SPY in 2025.
What are EFA and EEM?
An exchange-traded fund, or ETF, is a fund that trades on a stock exchange like a share. Each fund here holds a basket of company shares. Our explainer on what an ETF is covers the structure.
BlackRock's iShares page, read on 11 November 2026, says EFA follows an index of large and mid-sized companies from developed markets outside the US and Canada. A developed market is the stock market of a rich country with long-established exchanges and rules.
EFA held 656 companies on 10 November 2026. On 9 November 2026, Japan was 22.77% of the fund and the United Kingdom 14.76%.
The same issuer says EEM follows an index of large and mid-sized companies from emerging markets. An emerging market is the stock market of a country with a faster-growing but less established economy.
EEM held 1,182 companies on 10 November 2026. Taiwan was 27.44% of the fund, China 21.25%, South Korea 17.76%, and India 12.94%.
State Street's page, read on 11 November 2026, says SPY follows the S&P 500 index and lists 504 holdings. Our explainer on the S&P 500 describes the index.
How did we compare them?
We used each fund's adjusted closing price, which counts dividends paid out and reinvested. Each price is the fund's own, so its fees are already deducted. All returns are in US dollars. Currency moves change an international fund's dollar return.
We call each of those yearly figures the annual rate from here on.
Each comparison uses identical dates for both funds. EFA's prices start on 17 August 2001, giving 6,345 trading days to 10 November 2026. EEM's start on 11 April 2003, giving 5,934.
Which stocks won over the whole period?
SPY won over both windows. Over EFA's 25.2 years, $10,000 in SPY became $101,195 and $10,000 in EFA became $48,483. Over EEM's 23.6 years, $10,000 in SPY became $131,976 and $10,000 in EEM became $85,135.
Chart 1 starts all three funds on 11 April 2003, the first date of our EEM prices. Over that shorter window, EFA earned 8.16% a year and turned $10,000 into $63,608.
Source: YX Insights price data
In Chart 1, the last day EFA's value stood above SPY's was 4 September 2014. For EEM, the last day was 10 June 2021. EFA fell behind in 2014 and EEM in 2021.
Which period did each lead?
Chart 2 shows the annual rate of each fund in three periods. The first starts in 2004, because EEM starts in April 2003. The last runs from 31 December 2019 to 10 November 2026, so it is not a full decade.
Source: YX Insights price data
From 2004 to 2009, EEM earned 16.46% a year, EFA 5.71%, and SPY 2.04%. From 2010 to 2019, SPY earned 13.44%, EFA 5.42%, and EEM 2.90%. From 31 December 2019 to 10 November 2026, SPY earned 14.71%, EFA 9.19%, and EEM 6.60%.
How often did international stocks win a calendar year?
The table gives each fund's return for every calendar year with a full year of prices. A calendar year runs from the last close of the previous year to the last close of that year.
Year | SPY | EFA | EEM | Highest |
|---|---|---|---|---|
2002 | -21.59% | -15.42% | not available | EFA |
2003 | 28.18% | 39.79% | not available | EFA |
2004 | 10.70% | 18.95% | 24.63% | EEM |
2005 | 4.83% | 13.32% | 32.62% | EEM |
2006 | 15.85% | 25.81% | 31.19% | EEM |
2007 | 5.14% | 9.94% | 33.31% | EEM |
2008 | -36.81% | -41.04% | -48.88% | SPY |
2009 | 26.37% | 26.95% | 68.93% | EEM |
2010 | 15.06% | 8.15% | 16.51% | EEM |
2011 | 1.89% | -12.25% | -18.82% | SPY |
2012 | 15.99% | 18.82% | 19.10% | EEM |
2013 | 32.31% | 21.39% | -3.70% | SPY |
2014 | 13.46% | -6.20% | -3.92% | SPY |
2015 | 1.25% | -1.00% | -16.18% | SPY |
2016 | 12.00% | 1.37% | 10.87% | SPY |
2017 | 21.70% | 25.10% | 37.28% | EEM |
2018 | -4.56% | -13.81% | -15.31% | SPY |
2019 | 31.22% | 22.03% | 18.20% | SPY |
2020 | 18.37% | 7.59% | 17.03% | SPY |
2021 | 28.75% | 11.46% | -3.62% | SPY |
2022 | -18.17% | -14.35% | -20.56% | EFA |
2023 | 26.19% | 18.40% | 8.99% | SPY |
2024 | 24.89% | 3.51% | 6.50% | SPY |
2025 | 17.72% | 31.55% | 33.98% | EEM |
Calendar-year returns with dividends counted, in US dollars, from the last close of the previous year to the last close of the year. EEM starts on 11 April 2003, so 2002 and 2003 are not available. 2026 is not complete and is left out. Bold marks the highest of the funds available that year. Source: YX Insights price data
Bold marks the highest return among the funds available that year. EEM was highest in five of the six years from 2004 to 2009.
EFA beat SPY in 11 of the 24 years from 2002 to 2025. EEM beat SPY in 9 of the 22 years from 2004 to 2025. Since 2010, each beat SPY in 4 of 16 years.
Across the three funds, SPY had the highest return in 12 of the 22 years from 2004 to 2025. EEM had the highest in 9 of them. EFA had it in 2022 only.
The table leaves 2026 out of every count, because the year is not complete.
What do rolling 10-year returns show?
A rolling 10-year return takes the ten years that end on a given day and expresses them as an annual rate. EFA's first ten-year window ended on 17 August 2011. EEM's first ended on 11 April 2013.
From those dates to 10 November 2026, EFA's rate beat SPY's on 510 of 3,831 trading days, or 13.31%. EEM's beat SPY's on 493 of 3,418 days, or 14.42%.
All of EFA's lead days fell between 17 August 2011 and 11 November 2013. All of EEM's fell between 11 April 2013 and 26 May 2015. After those dates, SPY's ten-year rate was higher on every trading day to 10 November 2026.
Source: YX Insights price data
On 10 November 2026, the ten years to that date gave SPY 15.02% a year, EFA 9.35%, and EEM 7.92%.
Which stocks win by each measure?
SPY wins on return since each fund's start. It also wins the 2010s and the 2020s so far. EEM wins from 2004 to 2009, with SPY last of the three.
SPY also wins on the worst fall. From 11 April 2003 to 10 November 2026, SPY's worst fall from a closing high to a later closing low was 55.20%, from 9 October 2007 to 9 March 2009. EFA's was 61.04%, from 31 October 2007 to 9 March 2009. EEM's was 66.45%, from 31 October 2007 to 20 November 2008.
Single years flip often. Both international funds beat SPY in 2004 to 2007, 2009, 2012, 2017, and 2025. EEM also beat SPY in 2010, while EFA also beat it in 2002, 2003, and 2022, when all three fell.
What does this comparison leave out?
We tested two international funds against one US fund. Other international funds would give other figures.
We did not measure currency separately. Our explainer on how exchange rates work covers it.
Each window starts on the first date in our price data, so a different start date would change every figure. A past lead is not a forecast.
Our S&P 500 vs global vs Nasdaq 100 comparison sets a world index beside the US one. Asset classes explained places stocks among other holdings. SPY is one of the names our Multi-model Signals cover.
The record shows international stocks ahead from 2004 to 2009. They were behind on annual rate in the 2010s and 2020s so far, with single years going either way.
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Common questions about international vs US stocks
Do international stocks outperform US stocks?
Not over the long run in our test, but they did in some periods. From 17 August 2001 to 10 November 2026, EFA earned 6.46% a year against 9.61% for SPY, with dividends counted. EEM led SPY from 2004 to 2009. Both beat SPY in 2025. A past lead is not a forecast.
Which did better, EFA or EEM?
EEM earned more a year from 11 April 2003 to 10 November 2026: 9.51% against 8.16% for EFA. EEM also fell further, with a worst fall of 66.45% against 61.04% for EFA over that window. SPY earned 11.56% a year over the same dates.
Have international stocks ever beaten US stocks over ten years?
Yes. EFA's ten-year annual rate beat SPY's on 510 trading days between 17 August 2011 and 11 November 2013. EEM's beat SPY's on 493 days between 11 April 2013 and 26 May 2015. Those ten-year windows began in 2001 to 2005, so they included most or all of 2004 to 2009. SPY's ten-year rate has been higher on every trading day since, to 10 November 2026.
What is the difference between developed and emerging market stocks?
A developed market is the stock market of a rich country with long-established exchanges, such as Japan or the United Kingdom, the two largest weights in EFA. An emerging market is one in a faster-growing but less established economy, such as Taiwan or China, the two largest weights in EEM.
DISCLAIMER: This article is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.
