Emerging markets exchange traded funds (ETFs) have resumed their record-setting pace from earlier this year. After their fifth week in a row of positive results, emerging market funds have taken in $2.5 billion. That’s about 20% above the weekly average, reported Murray Coleman for The Wall Street Journal. Investors are showing renewed interest in emerging market stock funds after the extreme selling from May to August.
Emerging market ETFs include BLDRS Emerging Markets 50 ADR Index (ADRE), which is up 24% year-to-date and iShares MSCI Emerging Markets (EEM) up 21%. Valuations in emerging market stocks are still favorable as average P/E ratio is 14 compared to 17 in U.S.
For full disclosure, Tom Lydon’s clients own EEM.
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