This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fund Flows Go Global

U.S. investors are getting more familiar with overseas equity.

According to recent data, investment in equity funds continues to flow into international stocks, while investment in U.S. equity is slowing.

At the same time, initial public offerings in foreign equity markets are rising at a faster clip than on U.S. exchanges.

The news comes as foreign equity market performance eclipses that of U.S. equities and fund managers encourage clients to move their money across the Atlantic.

"International equities in both developed and emerging markets has been outperforming the U.S., so that's driving increased U.S. investor interest in overseas equity," says Alec Young, equity market strategist at S&P equity research services. "It's not surprising at all to see money flows supporting non-U.S. equities."

In July, fund flows into world equity funds were $7.5 billion, compared to an outflow in U.S. equity funds of $2.4 billion, according to data in a Merrill Lynch research report on Wednesday. Year to date, nearly $106 billion has gone to world equity funds, compared with $38 billion invested in U.S. equity funds.

"It's just a judgment call that there is a slowing U.S. economy vs. the global economy having more momentum behind it," says Jay Suskind, head of institutional equity trading with Ryan Beck.

Over the past year, the FTSE 100, an index that tracks performance of the top 100 companies on the London Stock Exchange, is up around 11% for the year. Japan's Nikkei 225 is higher by nearly 28% for the year, and the Amsterdam Stock Exchange is up almost 19%. Meanwhile, the S&P 500 is up only 7% for the year.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs