Money Flees Emerging Bond ETFs on Evergrande, Fed Taper Risk
- JPMorgan EM bond ETF saw biggest outflow last week since March
- Emerging ETFs still lured $173.5m thanks to stock fund inflows
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Investors yanked money out of exchange-traded funds tracking emerging bonds last week as the spectacular unraveling of China Evergrande Group and a hawkish tilt from the Federal Reserve hit appetite for risky debt.
The biggest developing-market debt fund suffered the most. Money managers drained $781 million from the iShares J.P. Morgan USD Emerging Markets Bond ETF last week, with the largest day of losses coming after the Fed clarified plans to taper asset purchases and eventually raise interest rates. It was the $20 billion fund’s biggest weekly outflow in almost seven months, according to data compiled by Bloomberg.