Investors that were scared out of bond and emerging markets exchange traded funds earlier this year and are now scrambling to get back in, said Matt Hougan, President of ETF.com. Hougan said bond ETFs have seen $40B in fund flows as under-allocated investors chase performance in Treasuries and high yield. He said emerging market funds have also seen massive inflows as investors try and play catch up following last year's poor performance. Finally, Hougan said the money to invest in bonds and EM is coming out of European funds, as well as new cash coming in from the sidelines.
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