Tuesday, June 17, 2014

Emerging markets bloodbath highlights up-and-comer ETFs

emerging markets, exchange-traded funds Bloomberg News

Nearly $20 billion has flowed out of emerging-market exchange-traded funds in the last 13 months ($10 billion in just the past six weeks). But a handful of ETFs focused on these volatile markets have taken in about $6.5 billion.

These ETFs avoided outflows in large part because they weren't favorites of the “hot money” jumping in and out of markets in search of short-term returns. ETF giants iShares MSCI Emerging Markets (EEM; $30.8 billion) and Vanguard FTSE Emerging Markets (VWO; $40 billion) provided two favorite ways for speculative investors to place bets; those funds account for over 80% of the money leaving the sector. The smaller emerging-market ETFs that gained assets did so because they're attractive to long-term investors looking for innovative ways to get exposure to developing markets.

That's not to say these ETFs aren't risky — just about all emerging-market investing is.

Here’s a look at five up-and-comers, in order of inflows:

1. iShares Core MSCI Emerging Market

No comments:

Post a Comment