Emerging-market funds draw $1.57 billion as leveraged ETNs launch

Emerging-market equity funds attracted $1.57 billion in net inflows in the week through Aug. 19, their sixth consecutive positive week, while emerging-market bond funds drew $493 million for a third straight week, LSEG Lipper data cited by Reuters showed. Global equity funds also attracted $22.01 billion, their strongest weekly inflow in three weeks, despite a late-week selloff. Investors are weighing strong corporate earnings against rising government bond yields, elevated oil prices and renewed inflation concerns, factors that could increase interest in international diversification if a weaker U.S. dollar boosts emerging-market assets. Bank of Montreal and REX Shares launched six MicroSectors leveraged ETNs (exchange-traded notes), offering 3X long or -3X short daily exposure to Brazil, Japan and Taiwan. Taiwan may receive additional attention because of its semiconductor exposure and role in the global AI infrastructure boom. The products reset leverage daily, so longer-term performance can differ substantially from three times the underlying index's cumulative return.

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