This Week in Emerging Market Volatility

I saw a shocking statistic this past week regarding investing in emerging markets. Apparently in 2012 US investors bought $54 billion worth of exchange traded funds that would give them exposure to emerging markets. This is a huge increase over $3 billion that flowed into these funds in 2011. Needless to say, US investors have high hopes about the performance of emerging markets in 2013. The volatility of these markets appears to share this outlook as VXEEM closed at 15.85 Friday which is an all-time low based on data available from At least for the moment, VXEWZ also is indicating good thing for investors as it also closed at an all-time low of 17.48 on Friday. This was almost a full point lower than the previous low of 18.43 which was achieved on Tuesday. Traders are starting to take note of the futures contracts on these two indexes. Friday’s VXEEM volume was 379 contracts and 452 VXEWZ contracts changed hands Friday as well.