NEW YORK, February 8 (FinanceEnquiry.com) - Year 2012 has given a strong start to the exchange-traded funds (ETFs) industry in the US, as it has attracted the largest monthly new inflows for more than two years. The ETF Industry Association mentions that the ETFs (funds and products) listed in the US attracted a total of $28.8 billion in new inflows this month, as compared to $9.6 million in the same month a year earlier, which shows an increase of 200 percent increase.

Strong inflows into emerging markets ETFs have also improved the risk appetite, such as VWO of Vanguard is leading the product league table with inflows of $3.2 billion, whereas EEM fund of rival iShares bagged $1.3 billion. This shows a remarkable change from last year when the US investors pulled out $2.4 billion from emerging markets ETFs last year.

The emerging market strategist of Citigroup, Geoffrey Dennis, mentions that emerging markets are expected to climb 25 to 30 percent this year and support for these markets will be offered by falling inflation and lower interest rates. Many companies, including Vanguard, iShares and State Street Global Advisors, saw a strong rise in their respective inflows as compared to January 2011. These providers obtained inflows of more than three-quarters in the month of January, although, the providers attracted 69.6 per cent of total inflows over the complete 2011.