Risk Traders Buy Emerging-Market Bond ETFs Ahead of Fed’s Cut
Investors piled money into exchange-traded funds that buy emerging-market bonds on Friday amid optimism that developing-nation debt will get a boost from a highly anticipated Federal Reserve rate cut this week.
Two of the biggest ETFs tracking EM bonds saw a cash infusion, according to data compiled by Bloomberg. The $16 billion iShares J.P. Morgan USD Emerging Markets Bond ETF received $46.3 million in inflows on Friday, while the Vanguard Emerging Markets Government Bond ETF recorded $32.9 million in inflows.