VEU saw significant investor interest in March, with $32.3 billion in inflows despite market turmoil and geopolitical risks, signaling a potential preference for global diversification. This trend is supported by a weaker U.S. dollar, which enhances returns on foreign investments by making overseas earnings translate into more dollars. Furthermore, UBS anticipates a broadening global equity rally through 2026, driven by structural forces like AI and supportive macro policies, forecasting nearly 12% EPS growth for the MSCI AC World index.
Within VEU's holdings, HCLTech (HCLTECH) is set to transform aviation maintenance operations for HAESL, deploying its asset management solution to streamline processes and boost efficiency. This development highlights ongoing digital transformation initiatives within the technology sector. While VEU offers broad international exposure, its limited direct exposure to the Middle East mitigates immediate geopolitical risk, presenting an attractive valuation. Looking ahead, traders should monitor upcoming earnings reports from key holdings, further shifts in the U.S. dollar's trajectory, and any new developments in global economic policy.
