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How to Find Value in the Emerging Markets Equity Exodus
February 11, 2014 at 19:00 PM EST
Emerging market equity ETFs posted another selloff for the month of January, totaling $10 billion in outflows globally – the largest monthly outflows for this segment on record. In fact, last week marked the 6th week of steady outflows, and set a record as the largest weekly outflow since August 2010. Investors seeking to avoid exposure to country specific turmoil, weak Chinese manufacturing data, plus interest rate adjustments in emerging market countries like Turkey, drove the selloff. Despite strong negative sentiment and ongoing scrutiny of the Fed’s potential next steps, emerging market equity valuations are attractive and the asset class remains a vital part of a well-diversified portfolio (emerging markets currently account for 11% of the world’s market capitalization). As my colleague Russ Koesterich recently pointed out, emerging market equities are generally growing at a faster rate than developed markets and now look cheap by most metrics. Currently emerging market equities are [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Emerging market equity ETFs posted another selloff for the month of January, totaling $10 billion in outflows globally – the largest monthly outflows for this segment on record. In fact, last week marked the 6th week of steady outflows, and set a record as the largest weekly outflow since August 2010. Investors seeking to avoid exposure to country specific turmoil, weak Chinese manufacturing data, plus interest rate adjustments in emerging market countries like Turkey, drove the selloff. Despite strong negative sentiment and ongoing scrutiny of the Fed’s potential next steps, emerging market equity valuations are attractive and the asset class remains a vital part of a well-diversified portfolio (emerging markets currently account for 11% of the world’s market capitalization). As my colleague Russ Koesterich recently pointed out, emerging market equities are generally growing at a faster rate than developed markets and now look cheap by most metrics. Currently emerging market equities are [...]
