Emerging Markets ETFs Achieve Record Monthly Cash Flow

Emerging Markets Exchange-Traded Funds (ETFs) have shattered their previous monthly cash flow record, tripling the amount received. Eric Balchunas, senior ETF Analyst at Bloomberg Intelligence, posted on X that these funds, which constitute 3% of assets under management (AUM), attracted 13% of the total cash inflow. Approximately 40% of the inflow was directed towards the iShares Core MSCI Emerging Markets ETF (IEMG), although numerous other funds also benefited from the increased cash flow. This surge in investment was not at the expense of U.S. equities or bonds but rather in addition to them, indicating a growing interest in emerging markets.