The breadth and depth of the fixed income ETP category allows investors the flexibility to capitalize on the market environment, even when rates are rising.
Wanderlust:
If you could hop on a plane and visit an emerging market country, which one would you choose? Well, if you were an emerging market debt ETP investor, it looks like you’d be heading to Brazil, Mexico or Russia. These are the top three countries held by emerging market debt ETPs. Improving fiscal, government and economic conditions are powering flow into EM debt ETPs. EM debt was the fastest growing segment of fixed income ETPs in 2012, growing 103% to $20.7 billion.
Looking for more ways to illustrate ETP flows? Check out this interactive chart. It lets you track quarterly ETP flows, broken down by equity, fixed income, commodities and volatility.
Dodd Kittsley, CFA, is the Head of Global ETP Market Trends Research for BlackRock.