Shorts Are Giving up on Emerging Markets ETFs

Additionally, the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG), the low cost alternative to EEM, is one of this year’s top asset-gathering ETFs as investors have continually looked for low-fee options when embracing ex-US equities.

IEMG has added over $1 billion in new assets in the fourth quarter while investors have poured nearly $846 million into VWO. Those two ETFs are among the top 10 asset-gathering ETFs in the current quarter.

“Talk of an impending end to gains in emerging-market equities has simmered since April, as richer valuations and festering political crises spurred mini selloffs in individual markets,” according to Bloomberg. “Yet the asset class as a whole repeatedly showed resilience, pushing investors to conclude this month that the rally won’t end unless there’s a shock from the Federal Reserve or an unlikely collapse in China’s economy.”

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Tom Lydon’s clients own shares of VWO.