The ETF World Has Two Sides
January 23rd at 11:00am by Tom Lydon
Investor fund flow trends as witnessed by single stocks and exchange traded funds (ETFs) appear to have a dual nature.
This began in 2007 with money going into safe investments and other flows into the riskier for above-average returns. Carl Delfeld for ETFXRAY reports that assets in emerging markets funds and ETFs doubled over 2007, to more than $800 billion. Compare that with $80 billion just ten years ago. Last week, however, saw record outflows from from European equity funds, and many blame the prospective U.S. fund flows going negative as the impetus.
As Gary Gordon for ETF Expert points out, the market is sick. Whether you call it a mental condition, or the flu, the market is unstable and not doing so hot. As for international country ETFs for 2008, only iShares MSCI Malaysia (EWM) is seeing the light of day. He suggests investing now with an eye toward the future: could worst someday move into first?
