iShares Emerging Markets ex China ETF Hits 10-Week Winning Streak
The iShares MSCI Emerging Markets ex China ETF has outperformed the SPDR S&P 500 ETF for 10 straight weeks, its longest outperformance streak. Bank of America forecasts international stocks to top U.S. equities in the 2020s as non-U.S. share of the $97 trillion global market climbs from 33% to 38%.
1. EMXC’s Record Outperformance Streak
The iShares MSCI Emerging Markets ex China ETF has topped the SPDR S&P 500 ETF for ten consecutive weeks, marking the first instance of such sustained relative outperformance in its history. This winning streak underscores growing investor interest in non-Chinese emerging markets amid shifting global leadership.
2. Structural Shift Toward International Stocks
Bank of America’s Michael Hartnett calls for a structural shift as international equities are expected to outperform U.S. stocks in the second half of the 20200s. This thesis is supported by factors such as fiscal expansion, populism and the end of deflation, which favor manufacturing-heavy economies.
3. Rising Global Equity Share
Non-U.S. stocks have rebounded from 33% to 38% of the $97 trillion global equity market, reversing two decades of U.S. market dominance in market capitalization weighting. This rebound has been a key driver behind the momentum seen in ETFs like EMXC.
4. Implications for EMXC Investors
Sustained relative strength in EMXC could attract further inflows as investors seek diversified exposure outside U.S. tech. However, potential headwinds include geopolitical fragmentation, currency volatility and sensitivity to commodity price swings in emerging markets.