Emerging-market ETF sees record $2 billion of inflows

Developing-nation stocks have rallied more than 5% so far this year as investors regain their appetite for riskier assets

Jan 22, 2019 @ 9:14 am

By Bloomberg News

The longest rally in emerging-market stocks in a year encouraged record inflows into at least one exchange-traded fund over the past two weeks.

Investors piled more than $2 billion into the iShares Core MSCI Emerging Markets ETF, the second largest emerging-market ETF, in the two weeks through Friday.

The fund has risen more than 6% this year, fueled by one investor making a couple of massive block trades last week, helping pushing its assets up by about $5 billion to an all-time high of $54.3 billion.

Developing-nation stocks are up more than 5% this year, after falling over 17% in 2018, as the appetite for riskier assets improves amid bets the Federal Reserve will pause its tightening cycle and hopes the U.S. and China will reach a trade deal. Cheaper valuations have also contributed to the rebound, with investors including Bank of America Merrill Lynch and UBS Wealth Management holding bullish calls for emerging-market assets.

(More: International investments bring a unique twist — foreign taxes)

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