Investors are dumping emerging market stock exchange traded funds, with global investors redeeming the most from developing stock markets since the financial crisis.
For instance, the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) experienced $948.2 million in outflows so far this month.
According to EPFR Global data, global investors pulled $9.3 billion from stocks in developing countries for the week ended Wednesday, the most since 2008, reports Anjani Trivedi for the Wall Street Journal.
Asian markets experienced the greatest outflows as investors yanked $7.9 billion from the region’s equity markets, the most in almost 15 years.
“Money is gradually leaving emerging markets, including Asia,” Paul Chan, chief investment officer of Asia ex-Japan at Invesco Ltd., said in the WSJ article. “It’s a repeat of 2013, but this time we are slowly pricing in the eventual rate hike.”
Specifically, Barclays said that about $6.8 billion came out of funds invested in China, Bloomberg reports.