
U.S. stocks may be breaking records, but a flood of investor cash is moving elsewhere—toward emerging markets, where valuations are cheaper, currencies are strengthening and years of underperformance may finally be reversing.
The iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) has attracted $7.4 billion in inflows so far in 2025, making it the 12th most bought ETF overall and the second-most popular international equity ETF after the Vanguard Total International Stock Index Fund ETF (NYSE:VXUS), which pulled in $7.8 billion.