Emerging Market ETFs Spike

While emerging market ETFs have enjoyed large gains since the beginning of March, investors should note that the majority of new money is going into the most liquid funds.

WSJ reporter Kejal Vyas writes in the column Emerging Markets See Spike in ETFs that exchange traded funds for emerging market stocks have seen net inflows of $3.35 billion since the beginning of last month.

Emerging market ETFs favored by investors include the iShares MSCI Emerging Markets Index Fund (EEM) and the Vanguard ETF Emerging Markets (VWO).

Vyas notes that analysts are questioning the sustainability of the rally because ETFs are very liquid enabling investors to make a quick exit if the market sinks again.

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