Flight to emerging market ETFs

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Investors are flocking to the emerging markets and many are using ETFs to provide access. Matthew Craig looks at why there is a high level of interest and the potential investment risks

For a large number of investors, the emerging markets are now an attractive investment destination and in many cases ETFs are being used to make this journey. Or as Towers Watson senior investment consultant Chris Sutton said: “There is a lot of interest in emerging markets and a lot of interest in ETFs at the moment. It is potentially a happy marriage.” In fact, ETF investors are now putting more money into emerging market equities than developed market equities. According to BlackRock, net new assets for emerging market equities in the first 10 months of 2010 were $36.8bn compared to $...

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