Case for investing abroad despite record U.S. market gains
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New catalysts for emerging markets, suggests EMQQ founder Kevin Carter

Investors may want to boost their exposure overseas.

“Home bias is about as bad as it’s ever been in the United States. The average investor has far too much of their money sitting in the United States,” ETF.com’s Dave Nadig told CNBC’s “ETF Edge” this week.

Nadig, the firm’s president and director of research, delivered his concerns during a record week on Wall Street. The Dow, S&P 500 and Nasdaq gained another one percent this week. Meanwhile, the iShares MSCI Emerging Markets ETF gained almost 3%. As of Friday’s close, the ETF closed at a 52-week high.

According to Nadig, going abroad may offer a better value.

“Getting out of the US. somehow, whether it’s in a very specific fund or a very specific country, or just broad international exposure, is something I’m hearing more and more investors and advisors talk about,” he added. “It’s hard to bet against China in the long term.”

EMQQ Global Founder and CIO Kevin Carter also sees benefits from putting money to work abroad. His firm is behind the Emerging Markets Internet and the India Internet ETFs. Both funds are designed to provide investors with exposure to internet and e-commerce companies in emerging markets. 

The Emerging Markets Internet ETF is up 35% so far this year, while the India Internet ETF is down 3%. However, Carter is still particularly bullish on the country.

India’s NSE Nifty 50 has been underperforming the U.S. markets so far this year — up 5%. But over the last five years, it has surged 118%.

“You now have the largest population, you have the best demographics, you have the fastest growth in the world, and that’s driving consumption,” said Carter. “That’s the same thing we saw in China over the last 20 years.”

India’s GDP is expected to grow by 6.2% in 2025, making it one of the fastest-growing major economies, according to IMF data. This year, India surpassed Japan to become the world’s fourth-largest economy.

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