Emerging Market ETF Assets Surge $2.3B, Most in Almost Two Years

How ETF Shares Are Created and Redeemed

Investors added $2.31 billion to U.S. exchange traded funds that invest in emerging markets last week, the biggest inflows since April 2014.

Deposits into emerging market ETFs that invest across developing nations as well as those that target specific countries compared with inflows of $139.4 million in the previous week and cut this year’s losses to $3.4 billion, according to data compiled by Bloomberg. The last time the funds added more was in the week of April 4, 2014, when the total reached $3.37 billion, the data show.

Last week, stock funds grew by $1.75 billion and bond funds increased $559 million. The MSCI Emerging Markets Index advanced 6.9 percent in the week.

The biggest change was in Brazil, where funds collected $289.6 million, compared with $6.7 million of inflows the previous week. Investors contributed $277.1 million to stock funds and $12.4 million to bonds.

The Ibovespa Index advanced 18.0 percent. The real strengthened 6.6 percent against the dollar and implied three-month volatility is 18.8 percent.

China and Hong Kong had the next-biggest change, with ETF investors adding $280.8 million, compared with $53 million of outflows the previous week. Stock funds grew by $277.7 million and bond ETFs increased by $3.1 million.

The Shanghai Composite Index gained 3.9 percent. The yuan appreciated 0.50 percent against the dollar and implied three-month volatility is 6.83 percent.

Following is a table detailing net inflows and outflows for emerging-market ETFs. The data include the index-weighted allocations from the biggest multi-country funds, such as the Vanguard FTSE Emerging Markets ETF and iShares MSCI Emerging Markets ETF, as well
as country-specific funds:

Flow WeekFlow %EquityBondFX
RegionEnd March 4ChangeFlowFlowChange
================================================================================
Total EM Flow2,307.2n/a1,748.2559.0n/a
Brazil289.6n/a277.112.46.58%
China and Hong Kong280.8629.99%277.73.10.50%
Mexico240.5n/a207.133.32.81%
South Korea173.7720.80%195.5-21.82.88%
Taiwan143.6n/a143.60.01.15%
India132.4718.17%132.6-0.22.29%
South Africa127.0744.83%108.718.35.36%
Russia106.2n/a79.426.86.18%
Indonesia106.1614.59%77.628.51.90%
Philippines64.6492.84%38.126.51.12%
Malaysia61.6190.84%46.914.72.45%
Poland49.5302.31%29.320.21.92%
Turkey41.0n/a10.930.13.13%
Chile40.6419.93%29.311.31.70%
Thailand35.4440.68%38.2-2.81.07%
Colombia24.6233.30%5.419.25.86%
Peru24.3440.73%4.120.21.92%
Argentina20.7808.12%3.317.41.73%
Qatar12.6n/a10.52.10.00%
U.A.E.11.8723.10%11.40.40.00%
Egypt6.7626.53%2.64.1-0.16%
Vietnam1.1125.14%-0.61.70.10%
Singapore0.1101.14%0.10.02.42%
Nigeria-2.8-24.48%-1.0-1.9-0.20%
================================================================================
*T
NOTE1: For further ETF analysis, download the ETF workbook: XLTP XETFM
NOTE2: For Bloomberg’s ETF screener: ETF
NOTE3: Currency performance for China and Hong Kong is based on the yuan,
stock index uses the Shanghai Composite Index.
Before it's here, it's on the Bloomberg Terminal. LEARN MORE