The exchange-traded funds in the emerging markets must get a boost which is significant from the completion of the phase one deal which is supposed to be completed on 15th January between United States and China.
The authorities of China and United States are set to sign this deal which is a first-step deal this Wednesday which is a major development when it comes to the dispute that has been going on between the largest economies in this world. A lot of people are not still sure of how the sweeping agreement is exactly going to impact the market in spite of the rally in a lot of the averages which had stemmed from the enthusiasm that had been early.
The IEMG, EEM and VWO are the biggest three emerging market funds. They account together for over $160 billion of all the assets in the emerging markets.
All three of them had a good year in 2019 as VWO had been up by close to 17%, IEMG had seen a rise of 14% and EEM saw a gain annually of 15%.
The experts have expected that the moves are going to continue however what they feel more positive about is the move in a lot of the smaller emerging markets which have been recording highs as well.
The stocks are again off to a good start in the year 2020 and they have been up by close to 10.5% after the beginning of the year. The emerging funds which hold the companies of Chinese internet have seen a growth with Tencent and Alibaba making up for most of these gains. Experts predict it to keep working.