Coping With a Bubble in Emerging Market ETFs

Tom Lydon submits: The U.S. and global market rally since March 9, 2009 has been questioned by many. Naturally, the skepticism is now being extended to emerging market exchange traded funds. Some investors have started to doubt the sustainability of recent gains. In the Reuters European Fund Summit in Luxembourg, fund managers expressed thrill over the huge demand in emerging market assets while some strategists offered a cautionary note, reports Jeremy Gaunt for Reuters . Emerging market funds tracked by EPFR Global touched a nine-week high in mid-March. Asia ex-Japan equity funds pulled in $730 million for the week ending March 17, Latin America equity funds reached an eight-week high and EMEA equity funds is on a four-week inflow streak. [ Emerging Markets and ETFs: What’s in a Definition? ] Complete Story

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