As the dollar strengthens and the S&P 500 sits comfortably above its 50-day moving average, international equity market ETFs remain stuck in the mud. Below is a snapshot of regional ETFs from our Trend Analyzer tool. These are ETFs that US investors purchase to gain exposure to the rest of the world, and ownership of them in 2018 has certainly acted as a drag on portfolios.
Aside from a couple global ETFs in the snapshot that have US exposure, the entire list is in the red. They’re in the red on a year-to-date basis, over the last week, and they’re below their 50-day moving averages.
Our “Bespoke Trend” reading is a proprietary algorithm that determines whether a stock or ETF is in a long-term uptrend, downtrend, or sideways trend, and 16 of the 22 ETFs in the screen below are in long-term downtrends. In addition, 13 of 22 ETFs have moved lower into oversold territory over the last week, meaning they’re more than one standard deviation below their 50-day moving averages.
For those in the asset allocation business, it’s probably a good time to add a little exposure to international equities and lower exposure to US equities.