“Folks are recognizing that emerging markets are no longer this homogeneous investment, that within emerging markets there are opportunities and there are challenges,” Michael Arone, chief investment strategist at State Street Global Advisors, said in the article.
Consequently, Arone points out that State Street and other providers have seen a reduction in broad-based emerging market ETFs and an increase in asset flows to regional- or country-specific ETFs, notably those that track emerging Asian economies. For instance, INDA has brought in a net $1.6 billion in inflows year-to-date. [Explosive Growth for Single-Country ETFs]
“Those economies are held out to have reformist policies and strong governments,” Arone added.
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.