This ETF is leading inflows for 2023

After receiving more capital inflows in January than all of 2022, the iShares Core MSCI Emerging Markets ETF (IEMG) is solidifying its position on Wall Street with $72.5 billion in managed assets and $4.1 billion in cash inflows year-to-date. 

Exchange-traded funds operate much like mutual funds. They are constructed to track a certain financial asset. In this case IEMG seeks to track the investment results of an index composed of large-, mid- and small-capitalization emerging market equities.

IEMG is up roughly 9.5% year-to-date, outperforming the Nasdaq, S&P 500, and the Dow Jones Industrial Average. 

Some of the fund's largest holdings include Taiwan Semiconductor Manufacturing, Tencent Holdings, Samsung Electronics and Alibaba Group. 

Last year, the fund accumulated just $3.82 billion amid rising interest rates and a weakened U.S. dollar.

THE FIRST ETF LAUNCHED 30 YEARS AGO, REVOLUTIONIZING INVESTING

Gargi Chaudhuri, head of iShares investment strategy Americas, said in a note to reporters Tuesday morning: "Given our expectations for tight financial conditions and higher rates, we continue to favor defensive, high-quality names, value overgrowth and relatively inexpensive small caps over large caps."

"Flows into fixed income ETFs have totaled $30 billion so far, handily outpacing equity ETF inflows of $16 billion," she added. "Just as in July 2022, we have also seen flows favoring longer-duration Treasury ETFs, with $4 billion into the long end versus just $1 billion into the short end."

According to iShares, IEMG is designated as "diversified" in approximately the same proportion as its underlying index.

Since its inception in Oct. 18, 2012, the ETF has returned a total of 22.47%. The average annual return is 2.01%.

The expense ratio is 0.09%.

MICROSOFT STOCK EN ROUTE TO WORST DAILY DROP IN WEEKS

GET FOX BUSINESS ON THE GO BY CLICKING HERE