Are ETF investors too bullish about emerging markets?

Signs of overexuberance in a market full of risks

Tom Eckett

Statue of bull after the Shenzen Exchange in China

Emerging markets are experiencing a renaissance in 2023 amid China’s reopening and a weaker US dollar, however, structural risks remain for an asset class that will struggle during a global recession.

Demand for emerging market ETFs has soared this year. According to data from Morningstar, global emerging market equity ETFs saw €7.2bn inflows in Q1, the most across all equity categories, while five emerging market ETFs were among the top 10 inflows across all equity ETFs...

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.

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