iShares MSCI Emerging Markets Small-Cap ETF Price & Performance (EEMS)

The iShares MSCI Emerging Markets ETF has risen by 6% year-to-date, surpassing the S&P 500, which is down 1.4%. Investors are turning to markets with less U.S. trade exposure amid ongoing tariff uncertainties. This marks a notable shift after years of underperformance by international equities.12

Major auto manufacturers saw significant gains after the White House announced a one-month tariff waiver. Stellantis led the rally with an 8% jump, while General Motors and Ford followed with increases of over 5% and 4%, respectively. The waiver aligns with the U.S.-Mexico-Canada Agreement's terms.13

Amid market volatility, U.S. fixed-income ETFs saw $2.28 billion in inflows, while international equity ETFs gained $1.48 billion. Meanwhile, U.S. equity funds lagged, attracting only $593.8 million. The shift reflects investor caution driven by inflation and tariff concerns, alongside underperformance in tech-heavy funds.4