Stocks, particularly in emerging markets (EMs), are witnessing a surge in passive flows.
Last week, inflows into the US-listed EM exchange traded funds (ETFs) were more than $1 billion for the second consecutive week. According to Bloomberg data, investors poured in $1.06 billion into EM ETFs, which invests in developing countries including India. In the previous week, flows stood at $1.06 billion.
Flows for the week ended November 8 were most since February 22 — also the fifth straight week of inflows.
The positive flows have boosted the performance of EMs. The MSCI EM index has gained as much as 9 per cent