Flows to emerging markets bond funds have been seen even as Brazil and Russia, often two of the largest country holdings in such ETFs, saw their sovereign credit ratings downgraded to BBB-, the lowest investment grade. S&P Capital IQ rates EMB marketweight.

On Thursday, Standard & Poor’s upgraded the Philippines to BBB better than the BBB- ratings sported by Brazil, India and Russia. Moody’s Investors Service, Fitch Ratings and S&P each upgraded the Philippines to investment-grade status last year. [Philippines ETF Soars Again]

This year, investors have allocated $52.6 million to the iShares MSCI Philippines ETF (NYSEArca: EPHE) or 14.6% of the ETF’s current assets under management total.

iShares J.P. Morgan USD Emerging Markets Bond ETF


Tom Lydon’s clients own shares of EEM, EMB and IEMG.