The two largest ETFs for emerging markets saw combined outflows of more than $2 billion last month as investors headed for the exits in the riskiest segments.
Investors pulled $1.5 billion from iShares MSCI Emerging Markets (NYSEArca: EEM) and $662 million from Vanguard MSCI Emerging Markets (NYSEArca: VWO), according to data from the ETF Industry Association.
So far in 2012, the Vanguard ETF has been the more popular option with net inflows of $6.4 billion, compared with $467 million for the iShares fund, EEM.
VWO has lower fees with an expense ratio of 0.20%, versus 0.67% for EEM. They both track the same MSCI index.
Emerging market ETFs are down about 11% the past month and are underperforming U.S. stocks in 2012.
Vanguard MSCI Emerging Markets
The opinions and forecasts expressed herein are solely those of John Spence, 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.