Investor appetites for international equities could continue after the Fed implemented a second rate cut. Investors looking to get international equities exposure would be wise to consider using an actively managed fund like the MFS Active International ETF (MFSI) .
Additional rate cuts are expected following October’s second rate cut of the year. But one more in December doesn’t carry a 100% guarantee. Federal Reserve Chairman Powell emphasized dissenting views among Fed members on the future direction of interest rate policy.
“He emphasized that there were strongly differing views on the [committee. And] some think it would be wise to skip a meeting amid signs of stronger growth, still sticky inflation and the government data blackout,” noted Jamie Coleman, MFS senior strategist, in a recent market insight: “Trade Truce, December FOMC in Focus.”
Nonetheless, the prevailing sentiment is the Fed will implement more cuts in 2026, which could help sustain ongoing migration to opportunities abroad. This opens the door for investors to seek an actively managed strategy that MFSI uses.
The Active Advantage
While offering opportunities for portfolio diversification, international investing carries its own set of unique risks. Geopolitical and economic risks can vary from country to country. Tariffs continue to be a wild card in international investing. That only adds to the additional uncertainty that comes with investing outside of U.S. borders.
Given these nuanced market characteristics, MFSI can provide benefits to investors. According to MFSI’s product website, the fund seeks to develop a well-diversified portfolio focused on equities that exhibit a growth-at-a-reasonable price style with a quality bias. With a discerning eye on quality, MFSI seeks equities that are trading at a discount to their projected value with strong growth potential.
