Billions Flood Active ETFs in Hunt for Cheap Developing Stocks

• Undervalued emerging stocks lure traders back to risky assets
• Despite small market share, active EM ETFs see big inflows

As investors scour the globe for under-valued stocks, one increasingly popular destination is actively managed exchange-traded funds that focus on emerging markets.

In the $348 billion market for ETFs that invest in developing-nation assets, the holdings of only about 5% of funds are actively managed — rather than pinned directly to an underlying index, according to data compiled by Bloomberg. But those actively managed funds have lured in more than a third of new cash that’s flowed into the asset class over the past year and more than 50% in the past month.

https://www.bloomberg.com/news/articles/2024-03-31/billions-flood-active-etfs-in-hunt-for-cheap-developing-stocks