Emerging Market ETFs are on Fire with $6.2 Billion in Net Inflows in July

August 1, 2016 by

emergingmarkets600X300Investors’ risk appetite continues to grow, and the search for both capital appreciation and yield is turning to our neighbors in emerging markets overseas.

The three largest emerging-market focused ETFs added a total of $6.2 billion in net inflows in July, according to data compiled by ETF.com. Here’s a breakdown of where the dollars are going:

Emerging Market ETFs – July Inflows

ETF Name July Inflows
iShares MSCI Emerging Markets Indx ETF (NYSE:EEM) $3.7 billion
iShares JPMorgan USD Emer Mkt Bnd Fd ETF (NYSE:EMB) $1.5 billion
iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) $1.0 billion

All three of the ETFs above made it into the top ten list of ETFs with the most net inflows in July, which is a huge sign that emerging markets are very much in vogue right now. Normally you wouldn’t see these funds attract so much money in such a small timeframe.

Also worth noting is how EMB, an emerging markets bond ETF, snuck into the list last month. Emerging market debt is about as risky as debt can get, which is yet another signal that investors don’t think U.S. bond rates will rise any time soon. In fact, traders are now indicating the odds of a Fed rate hike this year are only 12%.

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