Exchange-traded funds focused on international equities have attracted record inflows in the first quarter of 2026, totaling $48 billion. European and emerging market funds are the primary beneficiaries as investors seek diversification beyond US-centric portfolios.
The shift comes amid concerns about elevated US equity valuations and a weakening dollar that makes foreign investments more attractive. Japanese and Indian market ETFs have been particularly popular among retail investors.
Financial planners suggest that a 20 to 30 percent international allocation remains appropriate for most long-term investors, though individual circumstances vary.
