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ETF Investors Defy Stock Slump and Pile Into Emerging Markets

  • Developing-nation funds got $1 billion of inflows last week
  • Biggest EM ETF, Vanguard’s VWO, took in the most since January

The meltdown in global equities last week didn’t keep investors from snapping up emerging-market ETFs.

More than $1 billion flowed into U.S.-listed exchange-traded funds holding developing-nation assets last week, even as the main emerging-market stock index lost more than 1 percent with the outlook for U.S.-China appearing to take a negative turn amid rising tensions around the arrest of Meng Wanzhou, Huawei Technologies Co.’s chief financial officer. The biggest emerging-markets fund -- the $56 billion Vanguard FTSE Emerging Markets ETF, ticker VWO -- took in more than $292 million, the largest weekly inflow since January.