06 Oct 2025 | 5 Mins Read

Investors are cautiously embracing emerging markets amid renewed momentum

Flipitmoney

Emerging market assets are set to cap a strong year, with investors expecting increased inflows into equities and bonds in the final quarter. Economic growth has surpassed expectations, and a softer dollar is encouraging a rotation away from US assets, with the Fed's rate-cut cycle further boosting optimism. Inflows into EM ETFs have begun to pick up, with sentiment at a multi-year high.