Emerging Markets ETFs Attract Record $21 Billion After Korea, Latam Rally
Emerging markets equity ETFs drew $21bn in January, triple the prior monthly record, fueled by nearly 30% rallies in South Korea and robust Latam returns. Investors are using single-country ETFs to gain diversified exposure as US equities underperform international peers.
1. Record Fund Inflows
In January, emerging markets equity ETFs attracted $21bn, triple the previous monthly record and marking the highest single-month addition on record.
2. Regional Performance Drivers
Recent rallies, including a nearly 30% surge in South Korean equities and strong gains across Latin American markets, have driven significant investor interest.
3. ETF Accessibility Boosts Participation
Investors are favoring single-country and regional emerging markets ETFs for straightforward diversification beyond underperforming US equities without requiring deep local market expertise.