ETF Advisors, Investors Are Under Allocated Overseas

Many have enjoyed a bull run in the markets, focusing largely on U.S. domestic equities. However, if overseas stocks begin to pick up speed, exchange traded fund investors may be missing out on a growing opportunity.

ETF Trends publisher Tom Lydon spoke with Steve Deroian, Head of ETF Strategy at John Hancock, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about opportunities around the globe, despite the current environment that has drawn investors’ attention to U.S. markets.

“I think it’s fear,” Deroian said. “When you look at the U.S. markets, you’ve been able to really participate in that and see great growth. So anytime there’s an opportunity that doesn’t seem as truthful today, I think individual investors and advisors tend to shy away.”

Consequently, investors remain under allocated to overseas markets after years of underperformance, which may leave many missing out on a potential opportunity ahead.

“What we see, though, is when we look at portfolios of advisors that we deal with is under allocated international,” Deroian said.

John Hancock, though, expects the tides to change soon.