Core Viewpoint - The recent ruling by the U.S. Supreme Court against President Trump's global tariff policy has led to a significant inflow of funds into emerging market equity ETFs, indicating a renewed demand for risk assets in the market [1] Fund Inflows and Market Trends - The Avantis Emerging Markets Equity ETF experienced a net inflow of $429.5 million on the day of the Supreme Court ruling, marking the largest single-day inflow since May 13, pushing its total assets to a historical peak of $20.3 billion [1] - Year-to-date, emerging market equity ETFs have attracted over $35 billion in net inflows, with various emerging market indices hovering near historical highs [2] - Active management funds have captured nearly 15% of the inflows this year, as investors seek expertise to navigate uncertainties in developing markets [3] Regional Insights - In the emerging market ETF space, passive strategies have historically dominated, accounting for over 90% of total assets, but there is a growing interest in active management due to dissatisfaction with traditional index compositions [3] - Latin American markets, particularly Argentina, Colombia, and Brazil, are seeing increased investor interest, with the MSCI Emerging Markets Latin America Index reaching an eleven-year high [3] - The iShares MSCI Korea ETF led the inflows in the last week, attracting $694.7 million, driven by strong demand for Asian semiconductor stocks [4][9] Overall Market Data - Total assets in emerging market ETFs increased from $500.8 billion to $511.0 billion, with equity ETFs expanding by $2.52 billion and bond funds growing by $85 million [5] - The MSCI Emerging Markets Index closed at 1567.23 points, reflecting a 0.8% increase from the previous week, with no single country recording outflows [6]