Global Country ETFs Hovering Near 52-Week Peaks as Markets Rally Into Early 2026

International equity markets have demonstrated remarkable strength heading into 2026, extending the previous year’s upward momentum across multiple regions. The iShares MSCI ACWI ex US ETF (ACWX) has captured 3.6% of gains in the year-to-date period, substantially outpacing the SPDR S&P 500 ETF Trust (SPY) with 0.9%. The iShares MSCI Emerging Markets ETF (EEM) has climbed 5% through late January, setting the stage for several country-specific funds to hover near their annual peak valuations. This performance reflects a broadening of market participation beyond traditional US-centric portfolios.

Strong Global Momentum Carrying International Markets

The early 2026 rally represents a continuation of international outperformance, with multiple developed and emerging markets participating in the advance. Investors have increasingly rotated capital into geography-specific opportunities, as evidenced by the convergence of several country ETFs hovering around their 52-week high territory. This shift reflects changing perceptions about global economic prospects and the varying policy responses across different regions.

Norway’s Energy Advantage: Holdings Hovering at Peak Valuations

Norway’s country-specific ETF vehicles have demonstrated particular resilience, with the iShares MSCI Norway ETF (ENOR) and Global X MSCI Norway ETF (NORW) both lingering near their yearly highs at $30.82 and $31.93 respectively in late January. The strong performance stems from multiple supportive factors in the Norwegian economy.

Norges Bank has maintained its policy rate at 4.00% despite market speculation about future adjustments. Analyst expectations point toward potential rate reductions emerging in mid-2026, which could provide tailwind to equity valuations. Simultaneously, elevated global energy prices—with Brent crude hovering near $65 per barrel despite recent volatility—have benefited Norway’s oil and gas sector. The combination of commodity strength and anticipated monetary policy accommodation has reinforced investor interest in Norwegian equities.

Turkey’s Inflation Relief Fuels Fresh Rally

Turkey’s equity markets have experienced impressive momentum into 2026, with the Turkey iShares MSCI ETF (TUR) hovering just below its recent peak of $39.44. The driving force behind this advance centers on significant progress on the inflation front, which had previously constrained market performance.

Turkey’s annual inflation rate decelerated to 30.89% in December 2025, representing a decline from 31.07% the prior month and beating market expectations of 31%. This marks the slowest pace since November 2021, validating the Central Bank’s aggressive rate-cutting campaign. As inflation pressures ease, policymakers can continue reducing borrowing costs, improving financial conditions and corporate profitability. This development has proven instrumental in restoring investor confidence and supporting equity appreciation.

South Korea’s Chip Boom Keeps Indexes Elevated

South Korean equity markets have advanced significantly, with both the iShares MSCI South Korea ETF (EWY) hovering near its $118.41 peak and the Franklin FTSE South Korea ETF (FLKR) lingering near $38.75. The KOSPI index has surged to record heights, driven primarily by the semiconductor sector’s exceptional performance.

Surging global demand for artificial intelligence chips has catalyzed semiconductor exports and valuations. December export data confirmed robust shipments, while optimism surrounding advanced chip architectures like HBM4 technology has attracted investor enthusiasm. The nexus of boom-cycle dynamics—strong demand, export growth, and technological advancement—has produced outsized gains that keep South Korea’s equity indices hovering at elevated valuations.

Japan’s Political Catalysts Supporting Record Highs

Japanese equities have reached record levels in recent weeks, with the iShares MSCI Japan Small-Cap ETF (SCJ) hovering near its $96.78 high. Political developments have emerged as a key catalyst, with Prime Minister Sanae Takaichi’s decision to dissolve the lower house of parliament on January 23 setting the stage for elections scheduled for February 8.

Takaichi’s elevated approval ratings have inspired confidence regarding her party’s ability to secure parliamentary control. Market participants anticipate that her administration may pursue aggressive fiscal stimulus, including elevated defense spending and targeted tax relief aimed at strengthening economic performance. The Japanese central bank has reflected this optimism in its latest economic projections, raising fiscal 2025 growth expectations to 0.9% from 0.7%, while lifting fiscal 2026 estimates to 1.0% from 0.7%. These upgraded forecasts, combined with political momentum, have supported Japanese equities as they remain elevated near recent record highs.

Key Takeaway

As multiple country ETFs continue hovering near or at 52-week highs, the underlying drivers—ranging from energy markets and inflation trends to semiconductor cycles and political change—suggest that international opportunities remain compelling for diversified investors seeking exposure beyond traditional US markets.