Largest Emerging-Market Stock US ETF Rebounds After FOMC Selloff
- Fed officials flagged risks of cutting rates too quickly
- Meeting minutes’ impact seen limited on attractive valuations
The recovery in developing-nation shares over the past month follows their worst start to a year since 2016 by the time of their mid-January low.
Photographer: Kosuke Okahara/BloombergThe largest US-listed exchange traded fund tracking developing-world equities rebounded from a session low after minutes from the Federal Reserve revealed policymakers saw the risk of cutting interest rates too quickly, signaling long-awaited monetary easing could come later than investors are pricing in.
The $74.6 billion Vanguard FTSE Emerging Markets ETF traded up to $41.21 at the New York close after slumping 0.2% following the release. The MSCI Emerging Markets index it tracks held onto gains of about 0.2% after climbing as much as 0.7% earlier. Investors’ souring risk appetite briefly took the currency gauge lower too, though it edged higher by the end of the trading day.