The Best Global Stock ETFs to Buy

Funding and Rate Hike Risks Resurface

The selling pressure centers on the mechanics of the AI boom. Hyperscaler debt issuance has surged to $93 billion from an average of $28 billion annually, according to Vanguard portfolio manager Thanh Nguyen. These companies need to raise roughly half their required funding for 2026 yet. This capital-intensive model faces a new headwind: hawkish commentary from Federal Reserve Chair Kevin Warsh suggests an interest rate hike is possible before year-end. Higher borrowing costs directly pressure the capital-intensive AI infrastructure buildout.

Correction Tests Global Tech Convictions

The retreat is global. South Korean chipmakers SK Hynix and Samsung each plunged 13%, dragging the KOSPI benchmark down 10% from its record high. The movement highlights a key risk for globally diversified funds: concentration in a handful of technology giants. "I don’t think this correction is over. We had extremely crowded positioning, leveraged products, and bullish sentiment," notes LPL Financial's chief technical strategist Adam Turnquist. For ETF investors, this underscores the importance of understanding underlying sector weightings.

Assessing Your Global Exposure

This selloff offers a concrete test for global stock ETF holdings. The market is questioning whether future returns in key sectors can justify current valuations and spending. Before the next downturn, investors should review: the technology weighting within their global funds, the fund’s exposure to capital-intensive "hyperscaler" models, and how it performed during previous tech-driven volatility. The goal is allocation with conviction, not just diversification for its own sake.