Emerging-Market ETFs Add $1.45 Billion in Sixth Week of Gains

Investors added $1.45 billion to U.S. exchange-traded funds that buy emerging market stocks and bonds last week in the longest stretch of gains since May.

Deposits into ETFs that invest across developing nations as well as those that target specific countries increased by more than $1 billion for the fourth straight week, according to data compiled by Bloomberg. The last time the funds had a longer winning streak was in the 11 weeks ended May 29.

While inflows slowed from $2.74 billion in the previous period, the funds have rebounded from losses of more than $5.7 billion through February, the data show. They are now up $2.81 billion for 2016.

Last week, stock funds collected $1.15 billion and bond funds advanced by $297.4 million. The MSCI Emerging Markets Index declined 1.7 percent in the week.

The biggest change was in China and Hong Kong, where funds collected $232.2 million, compared with $97.9 million of inflows the previous week. Investors contributed $230.3 million to stock funds and $1.9 million to bonds.

The Shanghai Composite Index advanced 0.8 percent. The yuan weakened 0.68 percent against the dollar and implied three-month volatility is 6.95 percent.

The worst slowdown was in India, where funds collected $121.2 million, compared with $314.4 million of inflows the previous week. Investors contributed $120.8 million to stock funds and added $400,000 to bonds.

The S&P BSE Sensex advanced 1.5 percent. The rupee weakened 0.19 percent against the dollar and implied three-month volatility is 7.05 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 25ChangeFlowFlowChange
================================================================================
Total EM Flow1,451.5-47.1%1,154.1297.4n/a
China and Hong Kong232.2137.23%230.31.9-0.68%
South Korea205.9-41.78%204.11.8-0.58%
Taiwan141.2-54.40%141.20.0-0.96%
India121.2-61.44%120.80.4-0.19%
South Africa84.9-32.73%74.310.6-1.23%
Brazil65.1386.19%52.212.9-1.48%
Mexico62.3-65.49%42.819.5-0.83%
Russia57.9-46.60%44.613.30.10%
Malaysia46.0-43.69%36.59.60.40%
Indonesia44.4-54.40%29.614.8-0.97%
Philippines41.9-18.21%28.513.4-0.01%
Turkey38.4-38.53%23.215.3-0.29%
Poland33.2-17.05%20.213.0-0.88%
Thailand27.9-63.93%25.52.4-1.09%
Colombia17.2-22.71%5.911.4-0.01%
Chile17.0-71.73%11.65.3-0.75%
Peru13.9-60.66%4.49.50.15%
Singapore13.7221.11%13.70.0-0.99%
U.A.E.13.1-36.00%12.90.20.00%
Qatar12.0-47.09%10.71.30.01%
Argentina7.510.01%1.06.51.88%
Egypt3.4-44.39%1.91.50.81%
Vietnam0.8134.32%0.10.6-0.10%
Nigeria0.3128.14%0.30.00.03%
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*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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