Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  U.S. Retail Investors Seem Committed To Foreign Equities
Posted Under: International-Global

 
View from the Observation Deck  
  1. Over the past 10 calendar years (2009-2018), retail investors funneled a net $464.38 billion into open-end World Equity mutual funds, according to data from the Investment Company Institute (ICI).
  2. For comparative purposes (not in chart), retail investors liquidated a net $1.34 trillion from U.S. Equity mutual funds over the same period, according to the ICI. 
  3. As indicated in the chart, while a couple of years reflected relatively modest net outflows (see 2016 & 2018), net flows to World Equity mutual funds have been positive for the most part even when the returns on foreign equities were negative (see 2011, 2014 & 2015).  
  4. Net flows to World Equity mutual funds have been largely positive even though the U.S. dollar appreciated 18.28% from 12/31/08 through 12/31/18, as measured by the U.S. Dollar Index (DXY).
  5. Our basic takeaway is that investors recognize that global economic growth rates have been higher than in the U.S., and future estimates suggest this trend could continue. 
  6. As of July 2019, world GDP growth rate estimates were 3.2% for 2019 and 3.5% for 2020, compared to 2.6% and 1.9%, respectively, for the U.S., according to the International Monetary Fund.
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The MSCI World (ex-U.S.) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. World Equity funds invest primarily in stocks of foreign companies. 

Download a PDF of this post, please click here.
Posted on Tuesday, October 1, 2019 @ 1:51 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
US Stock Markets Ended Sept. 27, 2019
US Economy and Credit Markets Ended Sept. 27, 2019
S&P 500 Index Earnings & Revenue Growth Rate Projections
The Upcoming Winter Heating Season Could Provide A Much Needed Boost To Natural Gas Prices
Evaluations and Opportunities
US Stock Markets Ended Sept. 20, 2019
US Economy and Credit Markets Ended Sept. 20, 2019
S&P 500 Index Companies Continue To Reward Shareholders
S&P 500 Index’s Dividend Payout Expected To Set An All-Time High In Q3’19
US Stock Markets Ended Sept. 13, 2019
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.