Moreover, investors are becoming more choosey as they shun riskier emerging markets for riskier assets in developed markets.
“What was so strange about last year was that in EM, risk was a losing proposition whilst in the DM space, risk actually delivered positive returns,” Citi strategists Markus Rosgen and Yue Hin Pong said.
Vanguard FTSE Emerging Markets ETF
For more information on developing countries, visit our emerging markets category.
For full disclosure, Tom Lydon’s clients own shares of EEM.