More investors are researching exchange traded funds (ETFs) and they are looking for the ones that fit right into their portfolio.  But questions arise and one ETF Trends reader recently turned to us for guidance.  He asks, "Why do foreign or emerging market ETFs, whose indexes/investments are solely in their own country/area, follow so closely the U.S. indexes, that are or can be solely in the U.S.?  Sure there is always some relationship in this global economy, but it can’t be that close!"

It doesn’t seem like it can be that close, but it is. Many times the U.S. will lead the rest of the world. But lately, emerging markets on different time zones will have an influence on U.S. markets.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.