U.S. ETF Investors Shy Away from Domestic Markets

Related: U.S. Stock ETFs Take a Breather on Latest Weak Earnings

Furthermore, foreign markets are beginning to outperform U.S. markets, which has further drawn investors’ attention. The MSCI ACWI Index has increased 17% this year, compared to the 11.5% rise in the S&P 500.

“U.S. equities have really led the way for a long time, but that trend has actually begun to reverse,” Acheson told Reuters.

Fund investor demand for bonds also remains high, despite the U.S. 10-year debt benchmark not delivering a yield above 3% since January 2014. Acheson believed that demand for bonds are elevated due to a greater number of Americans retiring from work and requiring more stable assets like debt securities.

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