According to the publication, investors have also pointed to the low valuations that some emerging market assets have as an advantage, especially at a time when many consider US stocks to be overvalued.
On 27 January, the MSCI Emerging Markets index traded at 16 times expected earnings (over the next 12 months), according to
Bloomberg. In comparison, the S&P 500 had a PE ratio of 22 times on the same day.
Sustainable gains across the board
The iShares MSCI Emerging Markets ETF [EEM], which is considered to offer the broadest exposure to emerging markets, has gained 11.06% in 2021 so far (through 11 February’s close). The iShares ESG Aware MSCI EM ETF [ESGE], which focuses on more sustainable companies, has gained 11.23% in the same period, while the Goldman Sachs ActiveBeta Emerging Markets Equity ETF [GEM] has grown 9.27%.
2021 - Das Jahr der Emerging Markets? msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Emerging markets attract $17bln of inflows in first three weeks of 2021
Business
January 23, 2021
London: Investors have piled billions of dollars into emerging market assets at the start of 2021 after a banner end to last year, showing how the flood of central bank stimulus continues to drive a frantic hunt for returns.
A group of 30 major developing countries has attracted $17bn in inflows in the first three weeks of January alone, according to a Financial Times analysis of daily data from the Institute of International Finance.
The strong start to 2021, with inflows largely aimed at equities, comes after a dramatic shift last year. After a record exodus of almost $90bn in March at the onset of the pandemic, investors returned to EM stock and bond markets in a rising flood, with almost $180bn in the fourth quarter bringing total inflows in the final nine months of 2020 to more than $360bn, according to a broader IIF dataset that tracks 63 emerging economies.
ANALYSIS-Thumbs up for emerging markets QE experiment but risks loom reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Analysis: Thumbs up for emerging markets QE experiment but risks loom
12/29/2020 | 05:40am EDT
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LONDON (Reuters) - Many emerging markets emulated their developed peers this year with bond-buying programmes that successfully tamped down borrowing costs, yet unease is also stirring about the possible hit to hard-won monetary policy independence.
Quantitative easing (QE), until recently the preserve of advanced economies such as Japan or the United States, was adopted this year by more than a dozen emerging markets seeking to combat economic pain from the COVID-19 pandemic.
While some central banks including South Africa and India limited themselves to buying government debt in secondary trading, others such as Indonesia and Ghana launched themselves straight into primary markets, snapping up bonds as soon as they were issued.