In October, emerging-market bond exchange-traded funds (ETFs) experienced significant outflows as investors became more risk-averse due to the upcoming US elections.
Traders have been reducing their exposure to these assets due to the uncertainty surrounding the election outcome, reflecting a cautious sentiment in the market as the election date approaches.
The iShares J.P. Morgan USD Emerging Markets Bond ETF, valued at $14.8 billion, saw its largest monthly loss since March, with outflows of $732 million. The Invesco Emerging Markets Sovereign Debt ETF also experienced outflows of $78 million during the same period.