Emerging Market ETFs Add $1.67 Billion, Longest Streak Since May

Investors added $1.67 billion to U.S. exchange traded funds that buy emerging market stocks and bonds last week, marking the longest winning streak since May.

Inflows to emerging-market ETFs that invest across developing nations as well as those that target specific countries advanced for the fourth straight week in the period ended March 11, according to data compiled by Bloomberg. The last time the funds had a longer period of increases was in the 11 weeks that ended May 29.

The gains slowed from the previous week, when inflows totaled $2.31 billion, the most since April 2014. Still the latest results cut this year’s net outflows to $1.36 billion, the data show.

Last week, stock funds collected $1.37 billion and bond funds advanced by $304.5 million. The MSCI Emerging Markets Index jumped 1.3 percent in the week.

The biggest increase was in China and Hong Kong, where funds collected $233.8 million, compared with $50.4 million the previous week. Stock funds grew by $232.4 million and bond funds added $1.5 million.

The Shanghai Composite Index declined 2.2 percent. The yuan strengthened 0.21 percent against the dollar and implied three-month volatility is 6.08 percent.

Mexico inflows slowed the most, to $104.4 million from $240.5 million the previous week. Investors contributed $83.5 million to stock funds and $20.9 million to bonds. 

The Mexico IPC Index declined 0.3 percent. The peso strengthened 0.43 percent against the dollar and implied three-month volatility is 14.17 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 11ChangeFlowFlowChange
================================================================================
Total EM Flow1,674.3-27.4%1,369.9304.5n/a
China and Hong Kong233.8364.08%232.41.50.21%
South Korea211.021.48%210.30.70.86%
Brazil173.1n/a158.914.24.67%
Taiwan128.5-10.51%128.50.00.48%
Mexico104.4-56.60%83.520.90.43%
India99.9-24.51%99.80.10.06%
Russia93.6-11.86%79.713.93.11%
South Africa90.5-28.76%78.911.60.79%
Indonesia78.9-25.66%62.916.00.44%
Malaysia70.414.33%58.811.60.60%
Philippines39.6-38.65%25.813.90.64%
Thailand38.79.14%34.64.00.90%
Chile34.4-15.29%28.46.0-0.44%
Poland32.7-33.87%18.414.31.94%
Turkey30.1-26.46%13.616.51.26%
Colombia18.4-25.07%6.412.00.20%
Peru17.2-29.10%7.49.82.89%
Argentina9.6-53.48%2.76.92.37%
U.A.E.8.7-25.91%8.70.00.00%
Qatar6.9-44.75%6.50.50.00%
Egypt3.9-41.55%2.31.60.02%
Vietnam0.7-39.49%0.00.70.00%
Singapore0.3101.85%0.30.00.10%
Nigeria0.0100.00%0.00.00.20%
================================================================================
*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.
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