Some Emerging Market ETFs Actually Bringing in Cash

September 3rd at 1:52pm by Paul Weisbruch, Street One Financial

Investors continue to seek protection in Emerging Markets via puts in EEM (iShares MSCI EM, Expense Ratio 0.67%), and this was a recurring theme throughout last week.

It is likely no coincidence that both EEM and related ETF VWO (Vanguard Emerging Markets, Expense Ratio 0.18%) rank among the leaders in net outflows activity in recent sessions as well, losing +$1 billion collectively via redemptions.

With activity surging in prominent Emerging Markets equity based ETFs in recent sessions, notably EEM and VWO, several other key ETFs in the broader “Emerging Markets Equity” landscape deserve some attention here.

DEM (WisdomTree Emerging Markets Equity Income, Expense Ratio 0.63%) has reeled in almost $600 million year to date, bringing its asset base to $4.7 billion. [Put Buyers Tap Emerging Market ETFs]

Compare this to the $8.1 billion in net outflows year to date in EEM and $4.1 billion leaving related fund VWO year to date and it is hard to not be impressed.

In a similar 2013 success story, EEMV (iShares MSCI Emerging Markets Minimum Volatility, Expense Ratio 0.25%) has been on a torrid pace in terms of attracting net assets, as the fund has raised $1.8 billion just year to date, in a very volatile year in terms of stock price action in the EM space.

The “low vol” formula has worked in the past with much success in areas of the market such as “U.S. Large Cap” and “U.S. All Cap” with SPLV (PowerShares S&P 500 Low Volatility Portfolio, Expense Ratio 0.25%) and USMV (iShares MSCI USA Minimum Volatility, Expense Ratio 0.15%) as notable standouts, so this environment in 2013 may be just perfect for a “low vol” focused fund such as EEMV. IEMG (iShares Core MSCI Emerging Markets, Expense Ratio 0.18%) is newer to the marketplace than EEMV has also turned in a nice performance in 2013 as far as asset raising, pulling in $1.7 billion.

Two other funds have made their mark as well in 2013 in terms of vaulting over the $1 billion mark in terms of AUM and they are DGS (WisdomTree Emerging Markets SmallCap Dividend, Expense Ratio 0.64%) and ECON (EGShares Emerging Markets Consumer, Expense Ratio 0.85%).

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

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