North American stocks tracked by ETFs around the world may have gained inflows since the market dip earlier this year despite a chaotic White House and uncertain market policy, but returns remain lacklustre.
Technology-focused exchange traded funds are leading the way compared to other US sectors following the market rebound. Of the 11 sectors in the S&P 500 Index, tech is at the top of the list in terms of inflows.
The long-awaited pullback following soaring equity markets may have taken its first step this week and low volatility ETFs have been impacted. Investors are concerned about inflation and rising interest rates, which have pushed up bond yields while stocks sink.
US-based financial stocks are seeing an uptick in both inflows and returns as experts reckon financial-focused ETFs are a good bet in the short term.
South Korea ETFs remain little phased by US President Donald Trump’s strong words about the dictatorship north of the border and show healthy longer-term returns for investors.
As the Trump rally continues to widen the gap between US and ex-US valuations, ETF investors are flocking to cheaper exposures abroad.