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

Full disclosure: Tom Lydon’s clients own EEM.

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