ETF Investors Not Enthusiastic Here or Overseas
February 1st at 1:00am by Tom Lydon
Recent optimism concerning international markets doesn’t seem to be attracting exchange traded fund (ETF) investors and the like to put their money overseas.
While 72% of U.S. investors believe the domestic economy will nosedive, they apparently are still timid about setting foot in the international markets, according to a study by Schroder Investment Management. The study also found that 54% of U.S. investors polled think Asian and emerging markets will record the highest returns this year.
It would stand to reason, then, that those areas are getting most of the assets, right?
Mariana Lemann for Ignites reports that it’s not the case. Optimism for Asian and emerging market equities does not equal any firm allocation plans toward international markets. Only 10% polled intend to invest anything overseas. The liquidity rush is sending investors to certificates of deposit, savings accounts or money market funds.
Analysts are not surprised with these findings because of the current state of the market, and 34% of investors polled said they’d rather not invest at all.
