ETF Edge Reassessing international markets amid geopolitical volatility 3/2/26
Mar 2, 2026
Cynthia Murphy, director of research at Vetify who tracks ETF flows and investor behavior, and Malcolm Dorsen, head of active investments and EM portfolio manager at Global X Funds. They discuss how Middle East conflict and tariffs may sway international returns. They weigh EM concentration risks, Latin America’s commodity appeal, and why advisors favor risk management and targeted country exposure.
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Conflict Is A Short-Term Shock Not A Structural Shift
- Malcolm Dorsen sees recent Middle East conflict as telegraphed and a source of short-term volatility rather than a structural shift in global investing.
- He argues higher US spending and eventual weaker dollar could reinforce an EM equity tailwind, making now a time to consider buying the dip.
Prolonged Conflict Could Reverse EM Tailwinds
- Dorsen warns a prolonged conflict that boosts oil, inflation, and US rates could strengthen the dollar and hurt EM equities, but he doesn't view that as the base case.
- Market moves already priced some risk: oil rose ~5% versus initially feared 10%, suggesting rapid repricing.
Investors Have Built Geopolitical Noise Into Portfolios
- Cynthia Murphy notes investors have grown accustomed to geopolitical noise and many already positioned in defense and thematic ETFs, reducing knee-jerk reactions.
- Her advisor survey found 75% still prefer equity risk in 2026, with diversification into themes increasing.