Several noteworthy emerging markets, including Brazil, South Africa and Turkey, have recently raised interest rates to defend slumping currencies, though results at the ETF level have been mixed. [Rate Hikes Not Helping These EM ETFs]
“The bright spots for flows in January were in non-US Developed Markets Equity, which gathered $11.2bn as a number of key themes from 2013 continued into the new year,” said BlackRock. “Pan-European Equity brought in $4.0bn aided by the most encouraging January Euro Zone PMI reading since 2011. Broad-based Developed Markets Equity (Global/Global ex-US) added $3.7bn and Japanese Equity exposures collected another $4.0bn.”
Fixed income ETFs saw inflows of $3.3 billion last month, with the bulk of that headed to short duration funds even as Treasury yields fell, providing some relief to longer-dated bonds. [Short Duration Credit ETFs]
U.S. sector ETFs raked in $2.9 billion last month with health care and technology combining for $2.2 billion of that total, according to BlackRock.
