“Non-US stocks have decoupled from domestic equities by a statistically unusual degree over the last 50 days,” said Nicholas Colas, co-founder of DataTrek, in a note Tuesday. This together with their outperformance may bode well for flows into international stocks heading into the second quarter, according to the note.“Non-US stocks have decoupled from domestic equities by a statistically unusual degree over the last 50 days,” said Nicholas Colas, co-founder of DataTrek, in a note Tuesday.
On Tuesday afternoon, shares of the iShares MSCI ACWI ex U.S. ETF were up 4.6% so far this year while the iShares MSCI EAFE ETF had a larger gain of 5.8%, according to FactSet data, at last check. The SPDR S&P 500 ETF Trust SPY was trailing with a year-to-date rise of 3.2%. Exchange-traded funds focused broadly on emerging markets are lagging this year in terms of performance based on Tuesday afternoon trading.
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