When interest in international stocks began picking up steam earlier this year, many primarily looked at these companies as a temporary safe haven from U.S. markets.
However, as 2025 has progressed, it’s become increasingly apparent that international equities are more than a mere defensive position. In fact, many international equity strategies have been generating significant returns as the year has progressed. This has been fueled by a multitude of favorable factors, including attractive valuations and rate cuts from international central banks.
Looking ahead, many advisors and investors are expecting the international growth theme to persist through 2025 and beyond. As such, it could pay off to get ahead of the game and fortify one’s international equity exposure while there’s still some attractive discounts and valuations.
Curating more expanded exposure to international companies may be best done through a diversified portfolio. By taking on different international sectors and sub-sectors, advisors and investors can access new routes for growth and income that a traditional international equity strategy could overlook.
BKGI Offers International Access Through Global Infrastructure
One fund that could offer a compelling use case for international diversification is the BNY Global Infrastructure Income ETF (BKGI). BKGI is an actively managed fund that looks to offer a blend of income and returns through global infrastructure companies.
Constructing a tilt towards global infrastructure is a focus that a diversified international equity strategy would likely not usually offer. As such, taking on a fund like BKGI can help advisors and investors gain access to companies that other international equity ETFs may overlook.
Gaining focused exposure to global infrastructure companies can offer a multitude of other benefits for an international equity portfolio. These companies tend to have defensive business models, and tools in place to mitigate the effects of inflation. Many infrastructure companies tend to provide essential services, and thus can more easily pass inflation costs onto consumers.
Furthermore, BKGI’s added benefit of steady equity income can do wonders for a diversified portfolio. BKGI’s dividend income can fortify advisor portfolios with a yield path that is relatively agnostic from the bond market.
Thus far, BKGI has provided its investors with highly compelling returns this year. As of July 31, 2025, the fund’s NAV has risen over 30% year-to-date.
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