There's a corner of the market gaining traction among ETF investors, according to The ETF Store's Nate Geraci."There is a little bit of performance chasing going on here, because broad international stocks have fairly significantly outperformed U.S. stocks since about the beginning of the fourth quarter of last year," he told CNBC's "BofA Global Research's latest market data out late this week appears to support Geraci's thesis.
According to the firm, inflows into emerging-market equities are clipping along at $152.3 billion on an annualized basis. This would mark the group's largest ever inflows if the pace continues. Geraci believes a weakening U.S. dollar due to a potential pivot away from interest rate hikes by the Federal Reserve is partially responsible for the shift. TheValuations of overseas companies may also be more attracting investors, he added.D.J. Tierney of Schwab Asset Management contends retail investors don't own enough global stocks.