Emerging market exchange-traded funds attracted about $4.5 billion in the week ending 31 July, their strongest weekly inflow since late February. The increase was driven largely by demand for Asian technology companies linked to artificial intelligence.
The iShares Core MSCI Emerging Markets ETF received more than $1.1 billion during the week. The fund has significant exposure to TSMC, Samsung Electronics and SK Hynix, placing it close to the semiconductor supply chain supporting AI infrastructure.
The inflows show that appetite for emerging market technology exposure remains strong despite recent volatility in chip shares. Some of the earlier weakness appeared to come from leveraged positions being reduced rather than a clear decline in expected AI spending.
Asian markets were mixed as conditions stabilised. The MSCI emerging markets equity index slipped 0.2 per cent, while emerging market currencies were broadly unchanged against a firm US dollar. South Korea’s KOSPI rose 1.6 per cent as buyers returned to semiconductor stocks.
The recovery in Korean chip shares highlights the market’s continued focus on companies that can benefit from data-centre construction and rising demand for advanced processors and memory. However, the sector remains sensitive to questions about the scale and timing of AI investment.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
