Many U.S. investors may want to consider putting more money into international markets. Dave Nadig, president and director of research at ETF.com, says most Americans have too much of their wealth tied up at home. “Home bias is about as bad as it’s ever been in the United States,” he said.
This week, Wall Street had a record performance. The Dow, S&P 500, and Nasdaq all rose about one percent. But international markets also saw gains. The iShares MSCI Emerging Markets ETF, for example, jumped nearly 3% and closed at a 52-week high.
Nadig believes international investments may offer better value than staying fully invested in the U.S. “Getting out of the U.S., whether in a specific fund, a country, or broad international exposure, is something investors are talking about more and more,” he said. “It’s hard to bet against China in the long term.”
Kevin Carter, founder and CIO of EMQQ Global, also sees opportunities abroad. His firm manages ETFs focused on internet and e-commerce companies in emerging markets, including the Emerging Markets Internet ETF and the India Internet ETF. The Emerging Markets Internet ETF is up 35% so far this year. The India Internet ETF is down 3%, but Carter is still very bullish on India.
India has strong growth potential. Its NSE Nifty 50 index has risen 118% over the last five years, even though it’s only up 5% this year. Carter says the country’s large population, favorable demographics, and rapid economic growth are driving consumption, similar to what China experienced over the past two decades.
India’s economy is expected to grow 6.2% in 2025, according to IMF data, making it one of the fastest-growing major economies. This year, India even surpassed Japan to become the world’s fourth-largest economy.
For U.S. investors, this suggests that looking abroad, especially at emerging markets like India and China, could offer bigger growth opportunities than staying fully invested in domestic markets.
