The S&P 500 may have been up over 5% last month, but there were better returns on offer overseas, and U.S. investors were quick to jump on them.
Based on capital flows alone, overseas markets won the capital contest by a landslide. Over $10 billion was withdrawn from US-listed funds tracking domestic stocks in January, one of the largest monthly draw out in recent years. Meanwhile, overseas ETFs enjoyed a bumper influx of American money, with U.S. investors diverting almost $18 billion into international funds.
This post appeared at 24/7 Wall St.