There’s a disconnect between performance and flows.  The iShares Core MSCI EAFE ETF (IEFA A) and the iShares Core MSCI Emerging Markets ETF (IEMG A) are offering around 10%-15% outperformance over U.S. ETFs year to date; however, U.S. equity ETFs are still seeing all the flows.  The Vanguard Total Stock Market ETF (VTI A), the SPDR Portfolio S&P 500 ETF (SPLG A), the Vanguard Growth ETF (VUG A-), the Invesco NASDAQ 100 ETF (QQQM B)), and the JPMorgan NASDAQ Equity Premium Income ETF (JEPQ A+) are among top ETFs by year to date flows.  “It’s a little bit psychological, right?” Islam said. “We depended on these U.S. stocks for so long, especially large-cap tech. And many investors were able to get away with just having that domestic exposure [over the past few years].” Seeing the pullback from U.S. large-cap stocks this year was a shock to many investors, Islam said. This has caused many investors to need to rethink portfolio allocations, and perhaps finally add a diversifier.  While there has been a mismatch between performance and flows all year in international ETFs, flows are typically late to follow performance, she noted. Furthermore, flows into international ETFs have improved as the year has gone on. But they’ve been overshadowed by even stronger flows into domestic funds.