Latest news with #developedmarkets
Bloomberg
18-07-2025
- Business
- Bloomberg
Ninety One's Kent on Blurring Lines Between EM and DM: EM Lens
Traditional safe havens are misbehaving as the once distinct boundaries between emerging and developed markets begins to blur. Peter Kent, Co-Head of Emerging Market Fixed Income at Ninety One, joins Bloomberg Intelligence Chief EM Fixed Income Strategist Damian Sassower to break down the risks and opportunities facing asset allocators across the globe. Kent and Sassower touch on global trade, supply shocks, capital flows, fiscal balances, investor positioning and currency volatility as the perceived safety of developed market debt is called into question.
Yahoo
16-07-2025
- Business
- Yahoo
US ETF Assets Hit New Record of $11.5T in June
U.S. ETF assets climbed to a record $11.5 trillion at the end of June, driven by $110.7 billion in monthly net inflows that pushed year-to-date flows to an all-time high of $554 billion, according to ETFGI's June 2025 industry report. The record-breaking performance underscores the ETF industry's dominant position in asset management, with sustained investor confidence reflected in 38 consecutive months of net inflows, according to the report. This momentum has propelled assets 11.5% higher year to date from $10.4 trillion at the end of 2024. The surge in ETF assets comes as the S&P 500 rose 5.1% in June, bringing its first-half gain to 6.2%, while developed markets outside the U.S. increased 3.2% for the month and 20.3% year to date, according to Deborah Fuhr, managing partner, founder and owner of ETFGI. Active ETFs led the charge with $41.2 billion in net inflows during June, accumulating $217.9 billion year to date compared to $132.5 billion in the same period last year, according to the report. Equity ETFs gathered $43 billion in June net inflows, though year-to-date flows of $191.5 billion trailed 2024's $203.2 billion pace. Fixed-income ETFs attracted $17.2 billion in June, pushing year-to-date inflows to $110.9 billion, well above 2024's $75.2 billion through the same period, according to ETFGI. Commodities ETFs reported $6.5 billion in June inflows, bringing year-to-date flows to $20.6 billion versus net outflows of $5 billion in 2024. IVV, Top ETFs Drive Market Growth The top 20 ETFs by net new assets collectively gathered $60.3 billion in June, according to the report. The iShares Core S&P 500 ETF (IVV) led with $13.8 billion in net inflows, followed by the JPMorgan Mortgage-Backed Securities ETF (JMTG) with $5.8 billion and the SPDR S&P 500 ETF Trust (SPY) with $4 billion despite $26.7 billion in net year-to-date outflows. Bitcoin-related products showed strong demand, with the iShares Bitcoin Trust (IBIT) attracting $3.9 billion in June inflows, according to ETFGI. Other major flows included the iShares Core MSCI Emerging Markets ETF (IEMG) at $3.5 billion and the iShares Core U.S. Aggregate Bond ETF (AGG) at $3.4 billion. The U.S. ETF industry now encompasses 4,329 products with $11.5 trillion in assets from 401 providers listed on three exchanges, according to the report. Market performance varied globally, with Korea gaining 16.1% and Israel rising 11.6% as top performers in June, while emerging markets advanced 4.8%, led by Taiwan's 8.5% gain and Turkey's 8.5% | © Copyright 2025 All rights reserved
Yahoo
07-07-2025
- Business
- Yahoo
2 diversifiers to consider as small caps 'continue to struggle'
Kristy Akullian, BlackRock head of iShares investment strategy, joins Market Domination Overtime with Josh Lipton to explain why she believes that international markets and developed markets are superior diversifiers to small-cap stocks. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. So hyperscalers, the big cloud giants, the mega trend of AI, Christie. Let me ask you, would you prefer here large cap, mid cap, small cap? Yeah, so right, you know, I think that within the US equity markets, we have a pretty strong preference for large cap. We like staying up in quality, we like being exposed to AI. But when we think about the portfolio as a whole, you know, you look to it to concentration to grow wealth and you look to diversification to protect wealth. Right now, what we're talking about a lot is really the ways to build more diversification into investor portfolios. And there we like international markets, we like developed markets as a better diversifier to your concentrated large cap US equity positions than something like small caps. Um, we think small caps are going to continue to struggle in a higher interest rate environment. We've seen the profitability profile of small caps continue to decline over the last several years. So we like DM equities, but like European equities, um, as both being lower volatility and lower correlation to US large caps as a way to build out that diversification. So IQLT is a great way to do that. The the quality factor internationally, um, is something that we have a lot of conviction in. So it's not just a a US story. We really do think that it's broadening out beyond that. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
18-06-2025
- Business
- Khaleej Times
UAE, Saudi Arabia likely to be reclassified as developed markets
The UAE and Saudi Arabia have demonstrated significant economic growth and financial maturity, warranting their reclassification from the Emerging Market Bond Index to developed market status, similar to Kuwait and Qatar, analysts say. This change would better reflect their robust economic profiles, characterised by low sovereign risk, tight spreads, and market maturity. 'Both UAE and Saudi have diversified their economies beyond oil, investing in infrastructure and technology, leading to stable growth and enhanced financial resilience. Their high sovereign credit ratings and tight bond spreads indicate strong investor confidence and market stability. Reclassifying the UAE and KSA as developed markets, and Oman and Bahrain as emerging markets, would acknowledge their achievements and attract a broader range of investors, further supporting their global standing and continued growth,' Meshal AlFaras, Head of Middle East, Africa and Asia at Janus Henderson, told Khaleej Times in an interview. There are some very clear requirements to be included in benchmark indices (the typical one being JP Morgan's EMBI global diversified). After broader inclusion of rich Middle Eastern countries in the benchmark during 2019 countries are now starting to exit because they are surpassing the income limit to be an emerging market. 'Therefore, Qatar and Kuwait are already exiting the benchmark and if the current cost of living in UAE remains at the same level next year, can also depart from the benchmark,' Thomas Haugaard, Janus Henderson's portfolio manager on the emerging markets debt hard currency, added. The current volatility in global oil markets due to ongoing geopolitical events are unlikely to affect the GCC countries, the analysts said. 'Most of the major energy exporters are highly rated, which means that they have solid access to market funding and are generally seen as resilient in times of financial market stress. As long as oil prices stay within reasonable ranges over the longer term, these sovereigns are alright. It is a bit more challenging for higher-cost producers and smaller frontier countries (eg. In Sub-Saharan Africa),' Haugaard said. Overall, from an asset class perspective, it is worth noticing that more than half of the investment universe in emerging markets debt hard currency are net importers of energy, and therefore benefitting from falling oil prices. 'As recent events clearly show, movements in the oil price are very sensitive to geopolitical turmoil, and the recent escalation of the conflict between Israel and Iran has pushed oil prices higher,' Haugaard added. While oil price fluctuations can strain public finances in many emerging markets, GCC nations such as the UAE benefit from robust fiscal buffers and active debt management strategies. The UAE, for example, continues to attract strong demand for its sovereign bonds, supported by high credit ratings and a diversified funding approach. 'Data shows that non-oil sectors contribute around 75 per cent of UAE's GDP, a strong indicator of economic diversification. Major non-oil sectors include real estate, tourism, aviation, logistics, finance, trade and renewable energy,' AlFaras said. Historically, oil prices have been in the range of $50-80 per barrel under stable global demand and moderate supply growth, which is a quite comfortable range for countries in the region given low all-in costs. The UAE is well known for its proactive economic planning and sizable sovereign wealth assets. Despite oil price fluctuations, the government has maintained investment in infrastructure and diversification programmes, helping to sustain investor confidence and macroeconomic stability. The same applies to other GCC Countries such as Kuwait, Qatar and Saudi and the best way to cover any potential shortfall in the fiscal budget is to tap into the debt market for the main infrastructure and giga projects, AlFaras said. With most of the global policy uncertainty emanating from the US ,there are signs that financial markets are rethinking the US as a safe-haven. During a short period in April after the US announcement of broad-based tariffs, financial markets experienced a simultaneous sell-off in US equities, US bonds and the US dollar, indicating a disruption in the traditional safe-haven behaviour of financial markets. 'While part of that re-think is of more tactical nature, having realised too much exposure to US assets, there is also likely a structural rethink that can benefit the rest of the world in terms of attractive capital flows. Even as global growth is slowing alongside a slowing US economy, we have seen US dollar weakness that has given more space to ease monetary policy to support slowing economies,' Haugaard said. The rethink about US exceptionalism caused a potential disruption of the traditional safe-haven behaviour which has historically amplified the negative impact on emerging markets from risk aversion in global markets. Hence, emerging markets are proving very resilient in this otherwise uncertain environment. AlFaras expects interest rates will stay higher for longer and will not go back to where they were over the last decade. 'In the GCC, and particularly the UAE, dollar pegs can help reduce currency volatility, which supports foreign investor appetite. Despite global headwinds, the UAE's stable macro framework and investment-grade profile make it resilient compared to many other emerging markets,' he added.
