This Smart Beta Emerging Markets ETF Has Outperformed Since January

Record flows into ex-U.S. international equity ETFs in January signaled a notable rotation as investors sought diversification and cheaper stocks outside mega-cap U.S. tech. The move suggests growing risk-on positioning and potential relative outperformance pressure on non-U.S. equities versus U.S. mega caps as portfolios rebalance.

Analysis

Record flows into ex-U.S. international equity ETFs in January signaled a notable rotation as investors sought diversification and cheaper stocks outside mega-cap U.S. tech. The move suggests growing risk-on positioning and potential relative outperformance pressure on non-U.S. equities versus U.S. mega caps as portfolios rebalance.