Schwab International ETF Gains 1.16% as Global Ex-U.S. Funds Draw $15.4B
Schwab International Equity ETF rose 1.16% as global ex-U.S. equity ETFs attracted $15.4 billion in January inflows and $1.4 billion in early February, while U.S. equity fund inflows fell 48% week-over-week. A 2.5% S&P 500 slide early in the week fueled rotation into overseas markets.
1. S&P 500 Volatility
The S&P 500 slid about 2.5% early in the week before a 2% rebound in the final session, driven by a sell-off in U.S. software and data services stocks as concerns over rapid AI spending weighed on sector valuations.
2. International Fund Flows Surge
Global ex-U.S. equity ETFs attracted $15.4 billion in January inflows—the highest in over four years—and added $1.4 billion in early February, while U.S. equity fund inflows dropped 48% week-over-week to $5.6 billion.
3. Schwab International ETF Performance
Schwab International Equity ETF rose 1.16% during this rotation, benefiting from diversification away from U.S. tech exposure and strength in developed-market equities supported by a 1.65% decline in the dollar over the past month.