Calvert International Responsible Index ETF

CVIE

Market cap $423M

After years of muted gains, international equity strategies may very well be having their moment in the sun. The macroeconomic picture is currently working in favor of these strategies.

Before 2025 even began, some investors and advisors were choosing to opt out of international equity exposure.  Back then, it wasn't too difficult to fault them for doing so.

Approximately two years ago, just before an Exchange conference kicked off, one of the largest asset managers entered into the ETF market. Morgan Stanley Investment Management (MSIM), home to some of the strongest asset management brands, launched their initial suite of ETFs in January 2023.

It's no secret that investors and advisors both are contemplating what the U.S. equity market is going to look like in 2025.  This uncertainty is understandable.

International equities have fallen by the wayside for quite a while now, with many investors choosing to focus on U.S. companies instead.  However, global equity strategies could return to being in favor soon.

Time and time again, the markets have not reacted well to cooling labor market data. In the U.S. Department of Labor reports for both July and August, job growth came in at lower levels than expected.

ESG isn't going away. Yes, it's taken hits over the last few years, losing its status among the biggest investing themes.

Morgan Stanley Investment Management's lineup of ETFs has grown to over half a billion dollars in assets since their launch last year. The firm entered the ETF space one year ago with the launch of six Calvert ETFs.

There's been increased chatter that the Federal Reserve could cut interest rates, perhaps multiple times, next year. That has provided ballast to domestic risk assets.