BMO and REX Launch Leveraged ETNs for Brazil, Japan, and Taiwan Amid Emerging Market Inflows
Emerging markets are experiencing renewed investor interest as global equity funds attracted $22.01 billion in net inflows last week, their strongest weekly inflow in three weeks, despite a broad market selloff late in the week.
The trend is particularly evident in emerging-market equity funds, which have seen six consecutive weeks of positive flows, totaling $1.57 billion in net inflows, according to LSEG Lipper data cited by Reuters. Emerging-market bond funds also posted a $493 million inflow, extending their winning streak to three weeks.
The renewed interest is driven by investors seeking diversification and potential growth opportunities beyond U.S. assets. This comes as global equity investors had been encouraged by a strong earnings season, with roughly 90% of MSCI World companies reporting second-quarter results and combined net income rising 39.7% from a year earlier, according to LSEG data.
However, rising government bond yields and oil prices have raised concerns about inflation and equity valuations. This could strengthen the case for international diversification, particularly if a weaker U.S. dollar improves the relative appeal of emerging-market assets.