Investors may want to boost their exposure overseas.
“Home bias is as bad as it has been in the US before. The average investor has too much money sitting in the US,” ETF.com’s Dave Nadig told CNBC’s ETF Edge this week.
Nadig, the company’s president and director of research, was concerned about a record week on Wall Street. The Dow, S&P 500 and Nasdaq earned another 1% this week. Meanwhile, the iShares MSCI Emerging Markets ETF scored almost 3%. As of the end of Friday, the ETF had closed at a 52-week high.
According to Nadig, going abroad may offer better value.
“We’re leaving the US. For some reason, whether it’s a very specific fund or a very specific country, or simply a broad international exposure, it’s something I’m hearing more and more investors and advisors talk about,” he added. “It’s difficult to bet on China in the long term.”
EMQQ Global founder and CIO Kevin Carter sees profits from putting money in to work abroad. His company is behind the Internet in emerging markets and the Internet ETF in India. Both funds are designed to provide investors with exposure to internet and e-commerce companies in emerging markets.
Internet ETFs in emerging markets have grown by 35% so far this year, while Internet ETFs in India have fallen by 3%. But Carter is still particularly bullish in the country.
India’s NSE NIFTY 50 has seen a 5% increase in US market performance so far this year. However, 118% has skyrocketed over the past five years.
“You have the largest population now, you have the highest demographic, you are the fastest growing in the world, and that’s driving consumption,” Carter said. “This is the same thing we’ve seen in China over the last 20 years.”
According to IMF data, India’s GDP is expected to increase by 6.2% in 2025, making it one of the fastest growing major economies. This year, India surpassed Japan, becoming the fourth largest economy in the world.
