Displaying items by tag: international

Assets in European active ETFs have more than doubled in two years to reach €62.4 billion, though they still make up only 2.6% of Europe’s total ETF market—far behind the 10.2% share in the U.S., signaling early-stage adoption. Investor interest is rising, with €13.4 billion in inflows so far in 2025 following €18.4 billion in 2024, yet active ETFs still represent just 6% of total European ETF flows. 

JP Morgan continues to dominate with a 56% market share, followed by Fidelity and Pimco, while new players like HSBC, Avantis, and Goldman Sachs are intensifying competition and pushing fees lower. 

Equity offerings are mostly “shy-active”, benchmark-aware strategies seeking modest outperformance, while fixed-income active ETFs have quietly excelled, expanding into complex areas like CLOs and mortgage-backed securities with strong early results. 

Finsum: Overall, Europe’s active ETF market is maturing rapidly, blending innovation, cost competitiveness. 

Investor interest in international bonds has been accelerating, as July fund flows showed a marked uptick in overseas bond allocations, according to Morningstar data. This trend reflects a growing desire to diversify away from U.S. bond exposure, with Vanguard offering three compelling options for investors seeking global fixed income opportunities. 

A weaker dollar, pressured by expectations of falling rates, has further boosted the appeal of international assets, drawing more flows into global and emerging market bond funds. For those balancing domestic and global exposure, the Vanguard Total World Bond ETF (BNDW) offers nearly equal allocations between U.S. and international bonds at a minimal 0.05% expense ratio. 

Investors who prefer a pure international approach may turn to the Vanguard Total International Bond ETF (BNDX), which focuses on developed markets, or the Vanguard Emerging Markets Government Bond ETF (VWOB), which provides higher yields through EM sovereign debt. 

Finsum: Total bond funds present flexible avenues for enhancing portfolio diversification and capturing income beyond U.S. borders.

Emerging-market stocks declined for a third straight day as anxiety mounted over President Trump’s upcoming global tariff rollout. The benchmark index for developing-nation equities dropped 1.6%, hitting its lowest intraday level since mid-March, with Taiwan’s Taiex plummeting 4.2% and officially entering correction territory. 

Investors across the globe pulled back ahead of the April 2 tariff deadline and a week packed with key U.S. economic data, including Friday’s jobs report. Strategists from Brown Brothers Harriman expect strong U.S. data to lift the dollar and continue pressuring emerging-market currencies.

Despite this week’s volatility, emerging-market assets are on track to post quarterly gains, aided by a softer dollar and hopes of a slowing U.S. economy. Meanwhile, South Africa’s rand rose on signs of a potential budget agreement, and Thai officials reassured investors of economic stability following a damaging earthquake in Myanmar.

Finsum: Without a roll back in tariffs, emerging markets are going to be difficult to navigate in the coming months. 

Global stock markets declined this week as investors braced for new U.S. tariffs that have heightened recession fears. The S&P 500 briefly fell into correction territory before rebounding, but it still posted its worst quarter since 2022. 

The uncertainty surrounding trade policy pushed the CBOE Volatility Index higher and drove investors toward safe-haven assets like gold, which reached a record high above $3,100 an ounce. 

Asian and European markets also struggled, with automakers hit particularly hard after Trump announced a 25% tariff on imported vehicles and parts. Meanwhile, CoreWeave's stock tumbled after its IPO, and Hong Kong’s CK Hutchison declined as a Chinese regulatory review delayed a major ports deal.

Finsum: Investors are flocking to bonds for any chance of relief, but this could be the time to buy on the bottom of the market if Trump pulls the rug on tariffs once again. 

Global stocks are anticipated to recover from recent market turmoil and gain modestly in the coming months, driven by expectations of forthcoming interest rate cuts by major central banks, according to a Reuters poll of over 150 equity strategists.

Despite a sharp decline in early August due to the unwinding of leveraged positions and weaker U.S. jobs data, the MSCI global index has regained most of its losses, now up 14% for the year. Analysts expect corporate earnings to outperform in local markets, supporting further growth in key equity indices, though at a slower pace compared to last year. 

While 13 of 15 major indices are forecasted to post single-digit gains by year-end, with no outright global correction anticipated, the pace of gains in 2024 is expected to moderate, reflecting a tempered outlook amidst a resilient macroeconomic picture.

Finsum: We’ll monitor how exchange rates fluctuate as inflation normalizes across countries.