Emerging market pension plans are trying to diversify from locally listed equities, taking on exposure to international markets. For instance, pension funds in Chile have $16 billion in U.S.-listed ETFs, according to ETFGI data.
Moreover, locally listed ETF markets in emerging economies are far less developed. According to BlackRock, there are 36 Latin America-listed ETFs with $12.3 billion in assets.
Meanwhile, ETF providers are expanding into developing economies to capitalize on the emerging middle class. Some sponsors are cross-listing U.S. ETFs on a local bourse and are teaming up with local distribution partners to sell products.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.