Emerging Markets ETFs Rebound As Trump Slump Wanes

VWO, the Vanguard emerging markets ETF, resides about 7% above its 200-day moving average. That ETF features significant exposure to China, Taiwan and Brazil, among other developing economies.

Emerging market assets have already struggled and may be past their lowest point. The EM segment could slowly improve from here with strengthening current account balances, rising commodity prices and better fundamentals.

“Money managers poured $US1.4bn into emerging-market equities in the week to February 1, the most in 16 weeks, according to data provider EPFR Global. Investors have also warmed to emerging-market bonds, with inflows to debt funds rising in four of the last five weeks, according to EPFR data. In the weeks after the US election, investors yanked more than $US5bn from emerging-market equity fund,” according to the Journal.

For more information on the ETF market, visit our ETF performance reports category.

Tom Lydon’s clients own shares of EEM.