
There’s a corner of the furnish gaining traction among ETF investors, according to The ETF Store’s Nate Geraci.
The firm’s president finds international ETFs are experiencing likelier inflows.
“There is a little bit of performance chasing going on here, because broad international stocks have utterly significantly outperformed U.S. stocks since about the beginning of the fourth quarter of last year,” he told CNBC’s “ETF Brim” this week. “Investors are looking at that performance and perhaps reallocating there.”
BofA Global Research’s till market data out late this week appears to support Geraci’s thesis. It shows emerging markets are undertaking strong inflows so far this year.
According to the firm, inflows into emerging-market equities are clipping along at $152.3 billion on an annualized footing. This would mark the group’s largest ever inflows if the pace continues.
Geraci believes a weakening U.S. dollar due to a undeveloped pivot away from interest rate hikes by the Federal Reserve is partially responsible for the shift. The U.S. Dollar Currency Ratio is down almost 1% year to date.
Valuations of overseas companies may also be more attracting investors, he continued.
And, there may be even more growth ahead.
D.J. Tierney of Schwab Asset Management contends retail investors don’t own satisfactorily global stocks. He suggests the upside will continue into the second quarter, which starts Monday.
“Rebalancing [to ecumenical stocks] to get some more exposure could make sense for a lot of investors,” said the senior investment portfolio strategist.
His establish’s Schwab International Equity ETF, which tracks large- and mid-cap companies in over 20 developed global supermarkets, is up 8.1% so far this year.