Although some developing economies have been viewed as vulnerable to Donald Trump’s presidency and there are concerns about the impact of interest rate increases by the Federal Reserves on emerging markets that have to service dollar-denominated debt, some market observers believe emerging equities can perform well again in 2017.
“We do think there is also a strong chance that EM has bottomed for the cycle and has begun a new cyclical leg of advance. However, such an advance will not come in a straight line (notwithstanding EM’s performance of the past 15 months),” reports See It Market.
To this point in the second quarter, two of top 10 asset-gathering ETFs are emerging markets ETFs, including VWO.
For more information on the ETF market, visit our ETF performance reports category.
Tom Lydon’s clients own shares of EEM.