Dividend ETFs tracking developing economies have also seen cash move in the door this year.
WisdomTree Emerging Markets Equity Income (NYSEArca: DEM) has gathered $628 million. “DEM holds over 200 high-yielding emerging-markets stocks, weighted by their aggregate annual cash dividends paid, which results in a portfolio fairly different from that of a cap-weighted emerging-markets fund,” says Morningstar’s Oey.
Other dividend funds for emerging markets include WisdomTree Emerging Markets SmallCap Dividend (NYSEArca: DGS), SPDR S&P Emerging Markets Dividend (NYSEArca: EDIV) and iShares Emerging Markets Dividend (NYSEArca: DVYE). All of these ETFs have seen positive flows for 2013.
The largest emerging market ETFs, Vanguard FTSE Emerging Markets (NYSEArca: VWO) and iShares MSCI Emerging Markets (NYSEArca: EEM), have experienced net outflows of $4.5 billion and $8.5 billion, respectively.
Full disclosure: Tom Lydon’s clients own EEM.
