Emerging Markets' Steep Spiral Hits ETFs

By Sumit Roy | ETF.com – Fri, 21 Aug, 2015 8:30 AM EDT

Slowing economic growth, a stock market crash in China, plunging commodity prices and the threat of a Fed rate hike—these are the concerns that have plagued emerging markets recently and investors are starting to feel the pressure.

Exchange-traded funds tied to emerging markets have been barreling downward all month long, putting most of them deep in the red for the year. The $23 billion iShares MSCI Emerging Markets ETF (EEM | B-99) touched its lowest point in four years today and is now down 13.3 percent year-to-date.

The massive $49 billion Vanguard FTSE Emerging Markets ETF (VWO | B-87) has fared only slightly better, with an 11.6 percent loss.