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Investors return to emerging market equity ETPs 

coronavirus_emerging_markets_investmentThe tide finally turned for emerging market equity ETPs in July, the first month of net inflows into the asset class since the start of the year.

Investors sunk $2 billion (€1.7 billion) into global emerging market equity strategies, according to a fund flow report published by BlackRock.

These inflows came amidst the first month of selling out of US equity since last August. 

As emerging market stocks attracted cash, investors pulled out net $2.2 billion from exchange-traded products investing in US stocks, the report shows.

These redemptions were driven by a sell-out of US-listed products, while US equity products in other regions attracted new investment. 

“Delving a bit deeper, single country ETPs were the main beneficiaries of the turn in sentiment, with China ETPs in particular drawing inflows,” the New York-based asset manager said. 

Overall, global net inflows into exchange traded products added $69.5 billion added in July after the $71.5 billion of inflows in June. Fixed income led the way once again, whilst a record month for gold drove overall inflows into commodities. 

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