iShares MSCI Emerging Markets ETF Price & Performance (EEM)

The iShares MSCI Emerging Markets ETF (EEM) has surged approximately 6% year-to-date, outperforming the S&P 500, which has dipped by 1.4%. This shift is attributed to investors seeking refuge in markets less exposed to U.S. trade tensions, particularly those in Asia and Latin America.123

Recent market volatility has prompted significant withdrawals from the iShares MSCI USA Momentum Factor ETF (MTUM), as investors seek to mitigate risks. With the S&P 500 experiencing a notable correction, some analysts suggest this may present opportunities for contrarian investors eyeing future rebounds.4

As the S&P 500 experiences a downturn, international ETFs, including the iShares MSCI Emerging Markets ETF (EEM), are gaining traction. The divergence is driven by favorable government policies abroad and shifting investor sentiment, highlighting a potential recalibration in global market dynamics.563