Exchange traded equity funds saw outflows in excess of $2.17 billion in the week that ended on Feb 2. US based funds saw inflow of $4.2 billion during the same period. Investors are shying away from investing wholly in emerging markets. The global economic crisis in 2008 saw investors preferring emerging markets as investment destinations. Demand for US focused ETFs is rising as signs of economic recovery grow stronger. Better than expected fourth quarter results posted by company
Investors pulled out $4.45 billion out of the broad based iShares MSCI Emerging Market Fund EEM. Inflation concerns in India and China, and instability in Middle East has led to investors adopting a selective approach when investing in emerging markets.
BRIC outflow touched $316 million while funds based in emerging Europe saw outflow of $141 million. Russia bucked the trend and attracted inflows of $195 million due to inexpensive valuation and high oil prices.
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