Why Are International ETF's Up When Foreign Markets Were Down?

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hirlaw
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Why Are International ETF's Up When Foreign Markets Were Down?

Post by hirlaw » Tue Aug 13, 2019 9:07 am

Can someone explain why, like today, international etf's (such as VEU) are up, when all foreign indexes were down the previous night. Thanks!

livesoft
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by livesoft » Tue Aug 13, 2019 9:16 am

I don't see an issue with that. They are reacting to the US markets and any other news in real-time. So yesterday, they reacted to US markets which closed last Friday and weekend news. Today they are reacting to everything.
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jebmke
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by jebmke » Tue Aug 13, 2019 9:17 am

hirlaw wrote:
Tue Aug 13, 2019 9:07 am
Can someone explain why, like today, international etf's (such as VEU) are up, when all foreign indexes were down the previous night. Thanks!
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by typical.investor » Tue Aug 13, 2019 9:20 am

hirlaw wrote:
Tue Aug 13, 2019 9:07 am
Can someone explain why, like today, international etf's (such as VEU) are up, when all foreign indexes were down the previous night. Thanks!
Perhaps livesoft took advantage today of the drop from the previous night, and others saw it as a signal that there will soon be a rebound and jumped in too.

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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by livesoft » Tue Aug 13, 2019 10:06 am

typical.investor wrote:
Tue Aug 13, 2019 9:20 am
Perhaps livesoft took advantage today of the drop from the previous night, and others saw it as a signal that there will soon be a rebound and jumped in too.
I made a few trades yesterday to pay for expenses: I sold VTI in my taxable account and a little bit later I bought the same number of shares of VTI (at a lower price) in my IRA after selling some bond fund shares in my IRA.

See also: https://www.bogleheads.org/wiki/Placing ... ed_account

I did call up the trade negotiator and tell them to delay imposing tariffs.
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by Doc » Tue Aug 13, 2019 1:29 pm

livesoft wrote:
Tue Aug 13, 2019 9:16 am
I don't see an issue with that. They are reacting to the US markets and any other news in real-time. So yesterday, they reacted to US markets which closed last Friday and weekend news. Today they are reacting to everything.
I try to trade Foreign ETFs only when both Europe and New York markets are open. About one hour each weekday if there are no holiday issues.
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by nisiprius » Tue Aug 13, 2019 1:32 pm

Because nobody knows nothing.
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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by whodidntante » Tue Aug 13, 2019 1:33 pm

One could argue that ETF prices are a better estimate of value than the stale prices of a closed market. Also, sometimes green money weakens versus brightly colored money, and that more than compensates for whatever foreign equities did.

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Re: Why Are International ETF's Up When Foreign Markets Were Down?

Post by Stinky » Tue Aug 13, 2019 1:42 pm

hirlaw wrote:
Tue Aug 13, 2019 9:07 am
Can someone explain why, like today, international etf's (such as VEU) are up, when all foreign indexes were down the previous night. Thanks!
You could ask the same question about US equities as follows:

Why are US ETFs up today, when all of the US indexes were down last night?

Of course, it's because ETF prices respond to current conditions. Closing indices from the prior day are just that - a stale indication as to where the market was yesterday.
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