ProShares UltraShort MSCI EAFE Price & Performance (EFU)

Recent fund flows indicate that gold and international equities are leading global investment returns, outpacing domestic stocks and bonds. Investors are seeking diversification amid volatility, with U.S. fixed income and some sectors lagging. This shift highlights a growing appetite for assets outside the U.S. as market uncertainty persists.12

The EFU ETF, designed to profit from declines in developed international markets, has seen a 13.55% drop year-to-date and a 4.72% decline over the past year. Technical signals suggest continued weakness, with traders cautious about catching further declines and waiting for a clear reversal before considering new positions.34

Institutional portfolios have shifted to a defensive stance, trimming exposure to rate-sensitive and gold mining assets while increasing positions in energy and alternative sectors. This cautious approach reflects ongoing concerns about interest rates and global growth, prompting managers to favor sectors with perceived resilience.51