International and emerging-market ETFs that trade on U.S. exchanges reached new 52-week highs on Friday, encouraged by strong capital flows, attractive valuations, and increasing investor appetite in non-U.S. markets.
See real-time price movements of BKEM here.
Per Barchart:
- BNY Mellon Emerging Markets Equity ETF (NYSE:BKEM) reached around $69.82 on Friday. Compare that to a low of around $52.26 in early April. Sustained technical momentum and general investor demand for EM equities are driving the surge.
- JPMorgan BetaBuilders Europe ETF (BATS:BBEU) peaked at $69.67, a sharp recovery from spring lows of around $54.58. Europe’s resurgence, combined with BBEU’s bottom-of-the-barrel 0.09% expense ratio, is drawing cost-conscious investors.
- JPMorgan BetaBuilders Emerging Markets Equity ETF (BATS:BBEM), which reached a 52-week high of $60.97, has been surfing on the same EM optimism wave as BKEM, driven by capital diversification out of U.S. equities into more promising global economies.
- VanEck Africa Index ETF (NYSE:AFK), hit a 52-week high of $22.20 on the back of rising commodity prices and renewed investor optimism in African economies.
According to Reuters, citing data from the Institute of International Finance, emerging market stock and bond portfolio inflows in July amounted to $55.5 billion. That’s the second-largest monthly inflow in four years.
Analysts cite improving global growth opportunities, a declining dollar, and firm commodity trends as major drivers of performance, propelling funds to gain popularity in Europe, Africa, and the broader emerging markets.
International ETFs That Reached 52-week Highs On Aug. 22
A recent report by Henley & Partners jointly with New World Wealth shows that “private wealth markets across Africa are expanding strongly despite global headwinds, underpinned by robust economic growth.
Sub-Saharan Africa's economy is forecast to grow by 3.7% in 2025 — outpacing Europe (0.7%) and the US (1.4%) — with growth projected to reach 4.1% in 2026.”
Numbers Behind The Buzz
A Financial Times report reveals that growing concerns over “fiscal dominance” in the U.S. are driving capital toward emerging markets. With U.S. budget pressures potentially sidelining monetary policy, investors are responding: EM debt ETFs have already seen a record $36 billion in inflows this year, surpassing the 2019 high.
Last month alone, EM stock and bond inflows totaled $55.5 billion, outpacing June's $42.8 billion and July's $47.6 billion. Notably, $30.8 billion went into Chinese debt, while $10 billion flowed into non-Chinese EM stocks, according to Reuters and data from the Institute of International Finance.
Notably, MSCI’s 24-country EM stock index is up 17% year-to-date, ahead of the S&P 500’s +9.5%, per Reuters.
Why It’s Happening
Political unrest, such as firing the head of the U.S. Bureau of Labor Statistics, has shaken investor confidence in U.S. institutions. Market participants are looking for safe havens in EM assets.
Moreover, the U.S. dollar is on the back foot. As a result, local-currency yields in markets like Brazil, Mexico, and South Africa are more attractive, especially when combined with stable exchange rates.
Finally, with the billions streaming into EM debt ETFs so far in 2025, investor confidence is high, even topping 2019 levels.
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