After a long slumber, emerging markets are finally waking up.
The iShares MSCI Emerging Market ETF, (EEM) which tracks the widely-followed benchmark for emerging market stocks, has surged 7% in the last three months, outpacing U.S. markets.
It’s hard to recall that at the start of 2014, investors feverishly yanked nearly $11.5 billion from emerging markets funds amidst concerns that countries from China to Brazil were going to tank as the Federal Reserve pulled back its stimulus measures and raised interest rates.
Since then, roughly $13.8 billion has poured into emerging markets funds, according to data from Trim Tabs.
“There’s so much more capacity for growth in these markets,” claims Peter Kohli, who manages emerging market investments for DMS Funds in Leesport, Pennsylvania.
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