A strengthening US dollar has contributed to a reversal of fortunes for emerging market equity ETFs after a strong run, with Turkey and Latin America among those hit the hardest by the recent sell-off.
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Momentum from 2017 has continued so far this year, with the MSCI World Index rising in most of the trading sessions since the 1 January.
Emerging market equity and commodity ETPs saw inflows following the Federal Reserve’s decision last week to raise interest rates once again, despite these areas of the market being traditionally considered interest rate sensitive and often suffering redemptions around rate hikes.