“Simply increasing broad exposure to emerging markets is no longer enough and it is necessary to discriminate between countries and regions,” Richard Titherington, head of emerging market equities, at JP Morgan Asset Management, said.
Brazil ETFs have experienced large flows as investors traded on elections news. Investors pulled over $293 million from the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), the largest Brazil ETF, last week after pouring $908.5 million into the ETF as it slumped during the third quarter. [Another Monday, Another Neves Surge for Brazil ETFs]
On the other hand, South Africa has stood out, with the iShares MSCI South Africa ETF (NYSEArca: EZA) experiencing $346 million in inflows. Offshore investors acquired $460 million worth of South African stocks last week, according to Reuters data. South African stocks strengthened Monday led by mining companies after China revealed that imports unexpectedly gained in September, Reuters reports. EZA was up 1.6% Monday.
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.