ETFs providing emerging and frontier market exposure have seen net inflows of $30.5bn up to August this year, according to BlackRock.
The fim's Emerging Market ETFs Industry Review shows assets under management (AUM) in emerging market ETFs and ETPs have increased 14.0% to $193.5bn in the same time period.
The latest figures mean that investments in the first eight months of this year have already outstripped the sum of $24.8bn for the whole of 2009.
Investment is coming primarily from the US, where inflows of nearly $15.5bn make up over half the global total, but the big change is in Asia Pacific. Net flows up to August of $8.6bn have already tripled those of $2.4bn across 2009.
The surge in investment follows on from emerging markets' powerful performance in 2009, when the MSCI EM Latin America index shot up almost 100% over the year, and the broad MSCI Emerging Markets Index rose by 74.5%.
Compared to these figures, and performance across emerging market indices over the last 10 years, this year's 2.0% slump appears relatively flat.
There have though been strong individual performances, with the MSCI Columbia up 39.6%, MSCI Thailand up 26.0% and MSCI Chile up 21.9% through the end of August.
Broad exposure equity ETFs still make up most of the market, with assets of around $97bn and just over 50% market share. Single country exposures are close behind though, with $89bn and 46% of the market.
This latter figure is fuelled primarily by China, where single country ETFs account for almost a fifth of the entire emerging market ETF space. Inflows to China specific ETFs account for over half of the total inflows to single country funds.
In a year of generally strong positive performances in emerging market ETFs, broad Latin American equity stands out for losing $444m in net flows through to August. In single country Latin American ETFs too, money has been flowing into Chilean and Columbian ETFs, but their relative size does not compare to losses of $583m from Mexican funds.
Brazilian ETFs have also seen net outflows, although at losses of just $79m this hardly reflects the 8.4% decline in the MSCI Brazil.
The iShares MSCI Emerging Markets Index Fund and the Vanguard Emerging Markets fund are the biggest in the sector by a significant margin, at $39bn and $30bn AUM respectively.
Vanguard's Emerging Market fund also tops the list for inflows, attracting net $11bn of new investor money, despite the 2.0% drop in the index it tracks.
117 new emerging market ETFs and ETPs had been launched already by August of this year.
The BlackRock report reveals that an investor now has ETF access to every MSCI emerging market country except the Czech Republic and Morocco. Part of this may be soon be rectified though, as the report lists a proposed WisdomTree Dreyfus Czech Koruna Fund.
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