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Index IDEA: FTSE Russell & XTF highlight surging emerging market ETFs in 2016

More than $20 billion in new assets have flowed into exchange traded funds, or ETFs, measuring emerging markets in 2016 as of October 17, according to new analysis from global index provider FTSE Russell and ETF data and analytics provider XTF.

This growth is a sharp reversal from 2015, where this category saw outflows of approximately $2.5 billion. And, in terms of performance, ETFs measuring emerging markets have risen nearly 16% in 2016 year-to-date after falling 16% in 2016.

Ken O’Keeffe, managing director, global ETPs, FTSE Russell:

“In addition to higher asset flows into emerging market ETFs year-to-date, there have been a number of notable recent developments. On September 18, Vanguard announced the completed transition of the world’s largest emerging market ETF (VWO) to the FTSE Emerging Markets All Cap China A Inclusion Index. And a number of emerging markets smart beta ETFs have been introduced based on indexes from FTSE Russell. Prominent providers such as Deutsche ETFs (DEMG) and JP Morgan (JPEM) have introduced new emerging markets factor-based ETFs and existing fundamentally weighted (FNDE) and market cap weighted (SCHE) emerging market ETFs from Schwab have seen strong asset flows. In addition, O’Shares Investments has recently registered a new multi-factor ETF based on FTSE multi-factor indexes tracking emerging markets.”


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Views expressed by Ken O’Keeffe of FTSE Russell are as of October 25th  and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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