Big Appetite For Non-U.S. Stocks

Among all ETFs on Monday, none took in more money than VEU, the Vanguard fund focused on developed markets excluding U.S. stocks.

The fund absorbed more than $666 million, its largest one-day inflow ever. It accounted for 2.3% of the fund's assets, the largest bump since 2011.

The knee-jerk suggestion is that it was triggered by investors betting on foreign stocks out-performing the U.S. as interest rate policies diverge. Whatever the reasoning, large flows in funds like this tend to be contrary indicators in the shorter-term.

We'd have more confidence in that if the one-day inflow had occurred after multiple days or weeks of large inflows, but that hasn't been so much the case. We'd rate it a minor negative for VEU.