Investors have begun a significant rotation away from U.S. stocks and domestic ETFs since the start of 2026. This shift is driven by a broad-based risk-off strategy as market participants seek to mitigate exposure to domestic volatility. Consequently, capital is flowing into safe-haven assets, with gold (XAU/USD) and silver (XAG/USD) seeing increased demand. Global ETFs are currently outperforming the U.S. market, benefiting from this international capital reallocation. Analysts note that this trend reflects a growing preference for diversified global exposure over concentrated U.S. positions. While major indices like the S&P 500 (SPY) face downward pressure, precious metals continue to gain momentum.
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