ETFs & Mutual Funds
Billions Flood Active ETFs in Hunt for Cheap EM Stocks
- Undervalued emerging stocks lure traders back to risky assets
- Despite small market share, active EM ETFs see big inflows
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As investors scour the globe for under-valued stocks, one increasingly popular destination is actively managed exchange-traded funds that focus on emerging markets.
In the $350 billion market for ETFs that invest in developing-nation assets, the holdings of only about 5% of funds are actively managed — rather than pinned directly to an underlying index, according to data compiled by Bloomberg. But those actively managed funds have lured in more than a third of new cash that’s flowed into the asset class over the past year.