Emerging Markets Show Biggest Premium Since ’12 With ETFs - Bloomberg

Emerging Markets Show Biggest Premium Since ’12 With ETFs - Bloomberg:



"Nobody likes missing a bull market, even if it’s happening half a world away. 




With stocks rising from Sao Paulo (IBOV) to Moscow to Istanbul, asset managers have piled almost $11 billion into developing-nation exchange-traded funds listed in the U.S. this quarter, the most since 2012, according to data compiled by Bloomberg. That’s sent the premium of the biggest -- Vanguard Group Inc.’s FTSE Emerging Markets ETF -- to an average 0.2 percentage-point over its underlying assets, the widest gap in two years.



Investors are returning to developing-nation ETFs after pulling $31 billion from them in the year through March on concern that the end of easy-money policies from central banks and flare-ups of violence from Thailand to Ukraine would destabilize markets. Stocks in emerging economies are outperforming developed for the first time in six quarters, climbing 5.2 percent, while all but three of 296 emerging-market sovereign dollar bonds tracked by Bloomberg gained in the first half, the broadest rally in at least three years, the data show.

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