July ETF Flows: Emerging Markets Are Back
In July, ETF money went out of gold and into emerging markets.
Strong investor inflows into risk-sensitive assets helped support the asset growth in July. Investors poured $9.62 billion in net new cash into exchange-traded products for the month, with two broad-based emerging markets ETFs leading the way: The Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) gained more than $2 billion in new assets, while the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) came in second, with $1.49 billion.
On the flip side, investors pulled money out of traditional safe-haven assets in a major way. State Street Global Advisors’ SPDR Gold Shares (NYSEArca: GLD) product had $1.43 billion in net outflows, second most of all products. Also losing out was the Pimco Enhanced Short Maturity Strategy Fund’s (NYSEArca: MINT) assets, an actively managed money market fund that lost more than half of its assets in June.