ETF investors also took out $9.3 billion from iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM), and analysts note that the money may have flowed into the Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) and other emerging country-specific plays. Nevertheless, emerging markets have recently drawn significant investor interest, with EEM garnering around $1 billion in the last week. [Emerging Markets ETF Is A Buy, Goldman Says.]
The majority of funds that experienced inflows were ETFs based on passive indexing with no leverage component, with over 90% of ETF investors’ incremental capital put into these products over the last quarter.
Max Chen contributed to this article.
For full disclosure, Tom Lydon’s clients are invested in GLD.