After the impressive run in the domestic markets, advisors and investors are beginning to shift more money into emerging market equities and exchange traded funds.

Northern Trust’s chief investment strategist, Jim McDonald, has argued for easing up on U.S. stocks and moving capital into emerging-market equities, reports Jonathan Cheng for the Wall Street Journal.

The fund manager has raised his allocation of emerging market assets to 11% from 7% while lowering his exposure to U.S. stocks and corporate debt. [Two Low-Volatility ETFs for Emerging Markets]

“There are times to take money out of trades that have worked well, and this is one of those times,” McDonald said in the article.

Other market observers have also been making this move in light central bank moves and the extra liquidity sloshing around. [As Global Growth Falters, Consider Emerging Markets ETFs]

“Risk aversion has come down, and that’s definitely a positive for the emerging markets,” John Praveen, chief investment strategist for Prudential International Investment Advisers, said in the article.

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