Global investors are piling into the rally in equities markets with exchange traded funds tracking riskier asset classes such as emerging markets and high-yield bonds.
According to EPFR Global, long-only stock funds showed their first inflows in nine weeks for the week ended Nov. 4, reports Mark Gongloff for WSJ.com’s MarketBeat. [How Much Bounce is Left in Stock ETFs?]
Additionally, inflows to long-only stock funds and stock ETFs surpassed bond inflows for the second week in a row, Bank of America Merrill Lynch global equity strategist Michael Hartnett said. [Emerging Market, High-Yield Bond ETFs Lead October Inflows]
Other data points from the report include:
- Biggest inflows to emerging-market equities ($3.5 billion) since April 2011.
- Investors rotated out of Treasurys, investment-grade bonds and money-market funds into riskier areas like high-yield bonds, emerging-market debt and financial funds.
- Solid inflows ($493 million) to gold and precious metals for the second straight week..
- Money market funds saw $25bn outflows, the biggest since August 2011.
- Financials saw a sixth straight week of inflows, the longest streak since January 2011.
- Europe, Middle East and Africa equity funds broke a 25-week losing streak.
- Latin American stock funds broke a 13-week losing streak.
- Emerging-market Asia broke a 12-week losing streak.
Vanguard Emerging Markets ETF (NYSEArca: VWO)
For more information on ETF trends, visit our trend following category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.