Investors Sour on South Africa Emerging Markets ETF

Some analysts also believed that palladium could continue to shine as tightening market conditions will continue through 2018. Traders have increased positioning in future market as automobile sales hit record highs, especially with rising automobile sales in China.

“South Africa relies on portfolio flows to finance its current-account deficit, which widened to 2.4 percent of GDP in the second quarter from 1.9 percent. Bond inflows of about 68 billion rand this year are not enough to offset the stock outflows. A widening shortfall would add pressure on the rand, which has already weakened 4.9 percent this half,” reports Bloomberg.

The $375.7 million EZA holds 55 stocks, a combined 57.6% of which are consumer discretionary and financial services names.

In the third quarter, investors pulled $42.2 million from EZA and the ETF is lighter by $59.3 million year-to-date.

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