The S&P 500 Is Down — 4 critical areas of a balanced portfolio that are still winning.

Only 2 months into the year, we’ve watched the S&P 500 fall roughly 6% (peak-to-trough) with Tech stocks dipping even further.

Even with the tech correction, it’s worth highlighting what’s going well in the markets and what could be missing from your investments.

Here are 4 areas of a well-balanced portfolio that have out-performed the S&P so far in 2025:

𝟏. 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐬𝐭𝐨𝐜𝐤𝐬 (𝐛𝐨𝐭𝐡 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐝 & 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐧𝐚𝐭𝐢𝐨𝐧𝐬)

By far the best performers this year in a well-balanced portfolio are the International positions. Pretty much all of them.

Notably, many investors have abandoned this essential area over the past few years.

And for obvious reasons - US Tech completely has dominated returns, making everyone forget the perks of diversification.

But amid global, macro-economic uncertainty, it seems ex-US economies are holding their weight well.

Sample ETFs: VEA, SPDW, CWI, VWO

𝟐. 𝐔𝐒 𝐕𝐚𝐥𝐮𝐞 𝐬𝐭𝐨𝐜𝐤s (i.e. 𝐧𝐨𝐧-𝐭𝐞𝐜𝐡)

"Value investing" is tricky because everyone has their own definition.

Simplistically, "value" stocks are the ones that keep strong balance sheets, are not "expensive," and usually pay higher-than-average dividends.

It's the opposite of startups who reinvest profits back into themselves for the sake of Growth.

The issue is: not all value strategies are equal.

Some are performing very well right now, some are not. Choose wisely.

Sample ETFs: SCHD, IVE, SCHV, QVAL

𝟑. 𝐁𝐨𝐧𝐝𝐬

Most bond-categories have held their principle well this year. Some have even out-performed.

Treasuries are still paying attractive yields, and now we're able to pick up yield w/ longer durations.

Many Corporate bonds are also holding strong, earning yield, backed up companies with strong balance sheets.

Sample ETFs: AGG, SCHR, TLT, LQD

𝟒. 𝐌𝐨𝐧𝐞𝐲 𝐌𝐚𝐫𝐤𝐞𝐭𝐬

In lieu of pure cash, it still makes sense to try and earn a higher yield than what most banks are paying. 

The best money markets are paying above many of the top High-yield savings account.  

Sample MMs: SWVXX, SPAXX, SNSXX

Bonus: Gold & Silver

Much to my surprise, these precious metals had a stellar 2024, and have continued to perform great in 2025.

They are finally acting as the ‘non-correlated’ asset that we hope & expect for them to be.

There’s much chatter of Bitcoin taking the place of previous metals (assets with finite supply, no cash flows) in a standard portfolio, but the classics are clearly earning their keep after all.

The Takeaway:

In short, US Tech (which dominates the S&P 500) is in a slight correction. 

Great places to diversify into are:

1) International stocks, 2) Value stocks, 3) Bonds, 4) Money Market, 5) Precious Metals.

Plenty of the year left to go. Excited to see how it all plays out!

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