call 1 (855) 494-3551 with any questions contact us

The iShares MSCI Emerging Market Index (ETF) ($EEM) is up sharply in trading today as investors’ sentiment has turned bullish on risk assets. However, the ETF has seen significant outflows according to the latest data.

Screen Shot 2016-05-25 at 8.01.12 PM

ETF.com

According to data from ETF.com, EEM saw the second highest outflows for the week ended May 23, 2016. The reason for this is the possibility of a rate hike in the U.S. A rate hike in the U.S. is negative for emerging markets. Up until recently, market was anticipating, at the most, a single rate hike in 2016. But if the Fed does hike at its June meeting then it leaves the door open for a second rate later in the year.