Distracted by the rally in the equities market, investors continued pulling assets out of emerging market bond exchange traded funds.

According to EPFR and Nomura Securities data, emerging market bond bled $5 billion in assets in October, compared to a $2.8 billion outflow in September, suggesting investors are not confident in emerging debt, reports Shuli Ren for Barron’s.

In contrast, emerging market equities attracted $1.6 billion in October after $1 billion in September.

Regionally, emerging Asia, Eastern Europe, Middle East and Africa all saw inflows, but investors pulled money out of Latin America equity funds.

Over October, the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) rose 4.2%, whereas the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB) only rose 0.4% and iShares Emerging Markets Local Currency Bond ETF (NYSEArca: LEMB) increased 2%.

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