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This publication provides analysis of the growth in assets, net asset flows and trading volumes of all emerging and frontier market ETFs and ETPs.
Click here to download the report.
The use of ETFs and ETPs for emerging markets exposure have always been very useful and popular for many investors since it is often difficult to achieve exposure directly in many emerging and frontier markets such as Korea and Taiwan, without foreign investor status due to a limited selection of available futures contracts offering emerging and frontier market exposure.
At the end of August 2010, there were 450 ETFs/ETPs providing exposure to various emerging markets indices with 869 listings, assets of US$193.5 Bn from 94 providers on 38 exchanges in 32 countries.
YTD, ETFs/ETPs providing exposure to emerging and frontier market indices have seen net inflows of US$30.5 Bn, with US$27.9 Bn of net new assets going into emerging and frontier market equity ETFs/ETPs, of which US$18.7 Bn went into broad emerging market equity ETFs/ETPs and US$5.7 Bn into ETFs/ETPs tracking Chinese equity indices.
In comparison, for the full year 2009, ETFs/ETPs providing exposure to emerging and frontier markets had net inflows of US$24.8 Bn, with US$23.2 Bn going into ETFs/ETPs tracking emerging and frontier equity indices, of which US$9.6 Bn went into ETFs/ETPs tracking broad emerging/frontier market equity indices and US$6.5 Bn into ETFs/ETPs tracking Chinese equity indices.
The array of ETFs/ETPs now available to track emerging markets benchmarks has grown significantly, such that an investor can now access every MSCI emerging market country except the Czech Republic and Morocco.
Emerging markets has been one of the markets where we've seen innovation in ETF/ETP structures such as allowing for exposure to India and China A share indices. We expect to see continued growth in the use of these products, as well as emerging market and frontier market exposures availability.
Note: Flow data for many emerging market ETFs is only available 6 weeks after month end via the Simfund global mutual fund database, end of August 2010 data was the latest available when the analysis was produced.
