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.
US-based financial stocks are seeing an uptick in both inflows and returns as experts reckon financial-focused ETFs are a good bet in the short term.
Emerging market equity ETFs have amassed close to $50 billion year to date despite geopolitical turmoil brewing in the Middle East and anticipated interest rate hikes from the US Federal Reserve.
European investors have been selling out of gold ETFs, according to figures from the World Gold Council, with the price of the shiny metal falling back below the $1,300/oz mark during September.
US-listed ETFs have gathered more than $28 billion in September – a new annual high – despite the Federal Reserve hinting at interest rate hikes – a move intended to return to normal monetary policy and ward off another Great Depression.
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.