VWO, the largest emerging market-related ETF by assets, brought in more money in the five days through Thursday than any of the more than 2,400 other funds in U.S. exchanges, Bloomberg reports. The Vanguard FTSE Emerging Markets ETF enjoyed its biggest weekly inflow in two years.
On the other hand, ETFs that track the Nasdaq 100 Index shares, gold, silver, real estate, global bonds, and inflation-linked securities all suffered heavy outflows. Additionally, dollar debt, which is usually the most popular segment within the emerging markets, was also losing to stocks.
The emerging market space has attracted the attention of some big money managers. For example, Ashmore Group Plc, JPMorgan Chase & Co. and UBS Group AG have all been supporting a bullish case for emerging-market equities so far in 2021, predicting the category to be a prime beneficiary of the post-coronavirus economic recovery process.
March 5, 2021
For this week’s episode of ETF 360, ETF Trends CEO Tom Lydon and CIO Dave Nadig caught up with Janel Jackson, Head of U.S. ETF Capital Markets at Vanguard, to discuss capital markets and the opportunities investors might be missing out on.
Watch the Full ETF 360 Episode Here:
Looking at the market currently, particularly concerning volatility in single stocks, Jackson notes how it’s been an interesting observatory period. With that in mind, while used to a retail market base of investors, the thought is currently focused on long-term, broad-based, diversified products over chasing single stocks.
Jackson notes, “Something that we have noticed in our lineup is the shift from these large cap growth tech companies that were doing really well last year, to some of the more beaten down value names that have done really well year-to-date. That exposure we’ve seen clients gain through our
U.S. Stock ETFs Try to Rebound after a Dismal Week March 5, 2021
U.S. markets and stock exchange traded funds rebounded Friday, with the Nasdaq still on pace for its worst week since March after a rise in borrowing costs weighed on the economic outlook.
On Friday, the
Fueling the recent selloff, the benchmark 10-year U.S. Treasury yields touched a new one-year high of 1.626% after nonfarm payrolls rose by a 379,000 jobs last month, much higher than expectations of 182,000, Reuters reports.
“Investors are still trying to figure what they want in a battle between continued easy fiscal policies or an actual economical recovery which would require higher rates and they haven’t made that decision yet,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, told Reuters.
3 Stocks to Dump in a Rising-Rate Environment
February was a wild month for the stock market.
All three major indexes ended the month in the green, with the Dow Industrials adding 4.4% and the S&P gaining 3.4%. And even with its 4.9% decline last week, the technology-heavy Nasdaq still turned out a 1.4% gain.
This may be a sneak preview of what’s coming next for the markets… including three winning sectors and three losing stocks.
Marching in Like a Lion
The steep sell-off in tech stocks had one culprit: rising interest rates. The 10-year Treasury note jumped to 1.54% from 0.93% at the beginning of the year: