Rate Cut Kickoff Sparks Rush to Emerging Market Bond ETFs
Investors poured money into exchange-traded funds that buy emerging-market bonds last week as optimism around the Federal Reserve’s easing cycle fueled risk appetite.
Three of the biggest ETFs tracking EM bonds saw cash infusions last week, according to data compiled by Bloomberg. The $16.1 billion iShares J.P. Morgan USD Emerging Markets Bond ETF received $130 million in inflows, while the VanEck J.P Morgan EM Local Currency Bond ETF and Vanguard Emerging Markets Government Bond ETF recorded $109 million and $40 million, respectively in the week ended Sept. 20.