Emerging markets debt ETFs gaining assets

Assets invested in emerging markets debt ETFs was approximately $35.3 billion as of Feb. 28. Debt funds make up about 19.7% of investments in emerging markets debt and equity ETFs, up from 17% at the end of 2015 and 8.2% at the end of 2011.

Assets grew by $11.1 billion in 2016, while the combined EM ETF industry had $38.2 billion in new money come in. As of Dec. 31, there were 40 emerging markets debt funds and 137 emerging markets equity funds.

Dollar-denominated funds have historically made up the bulk of the emerging markets bond ETF assets under management and has changed little so far in 2017. Investors in euro-denominated and local currency ETFs saw opposite movements through February, with assets to local currency from euro-denominated in near equal proportions.