Why the lazy approach to EM investing may cost investors money

ABU DHABI (Sept 9): Investors scared by the sell-off in emerging markets earlier this year have not only dipped their toes back into the EM water — they've jumped right in.

A rally in EM debt and currencies has fueled gains in EM stocks, according to analysts at UBS Group AG, helping the MSCI Emerging Market Index handily outpace the MSCI World Index this year.

The inflows into EM equities underscore a transformative trend on Wall Street where the rise of passive investing – through exchange-traded funds (ETFs) and indexing strategies – has sparked debate as analysts question its ability to spread money efficiently.

---

Related Stories

• Dollar rises to highest since July as Trump takes early lead
• Geithner sees 'dark shadows' for next president, warns on US dollar
• Asian currencies can withstand a rampant US dollar

---