Related: ETF Investors Can Look Outside of U.S. for Value
After several years of struggling, emerging market equities and related ETFs perked up in 2016 and are building on those gains in 2017. Many investors are turning to overseas markets, especially the relatively cheap developing markets, in the wake of lofty valuations in the U.S. where we are going into the ninth year of the extended bull run.
Costa pointed out that the growth in ETFs have contributed to the drop in global equities and rates volatility. However, the Citi analyst did warn that “vol spikes may become nastier than the ones from the past.”
For more information on the developing economies, visit our emerging markets category.