Emerging Market ETF Inflows Surge to $9 Billion in Record Month

Investors pumped more than $1 billion into U.S. exchange traded funds that buy emerging market stocks and bonds last week, bringing the month’s inflows to a record $9 billion.

Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $1.11 billion in the week ended April 1, compared with $1.44 billion the previous period, according to data compiled by Bloomberg. 

March’s total of $9.09 billion was the most in records going back to the start of 2014 and more than made up for losses of $5.29 billion in the first two months of the year. For the first quarter, emerging market ETFs added $3.8 billion, the most since $7.41 billion in last year’s second quarter, the data show.

Last week, stock funds collected $866.1 million and bond funds advanced by $248.1 million. The MSCI Emerging Markets Index advanced 1.7 percent in the week.

The biggest change was in Brazil, where funds collected $198.3 million, compared with $12.9 million of inflows the previous week. Investors contributed $186 million to stock funds and $12.4 million to bonds.

The Ibovespa Index advanced 1.8 percent. The real strengthened 3.5 percent against the dollar and implied three-month volatility is 22.25 percent.

China and Hong Kong had the next-biggest change, with ETF investors adding $117.8 million, compared with $37.3 million of inflows the previous week. Stock funds grew by $116.3 million and bond ETFs increased by $1.5 million.

The Shanghai Composite Index gained 1 percent. The yuan appreciated 0.53 percent against the dollar and implied three-month volatility is 6.28 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 April 1ChangeFlowFlowChange
================================================================================
Total EM Flow1,114.2-22.8%866.1248.1n/a
Argentina6.5-13.48%1.15.4-1.92%
Brazil198.3n/a186.012.43.51%
Chile19.415.24%14.45.01.74%
Colombia13.8-19.52%4.09.81.19%
Egypt2.5-26.17%1.31.2-0.74%
India55.8-53.85%55.50.30.59%
Indonesia23.0-48.01%9.713.30.60%
Malaysia55.621.18%45.99.73.77%
Mexico68.810.64%51.717.21.15%
Nigeria0.0-102.72%0.00.0-0.10%
Peru14.75.50%7.07.70.97%
Philippines21.4-48.86%10.610.80.68%
Poland25.3-23.12%13.411.92.26%
Qatar8.7-27.71%8.20.5-0.01%
Russia-13.0-122.43%-24.311.30.73%
Singapore0.0-99.65%0.00.01.55%
South Africa79.8-4.99%70.59.35.13%
South Korea115.5-43.80%114.90.71.31%
Taiwan111.4-19.81%111.40.01.31%
Thailand29.89.32%26.13.80.36%
Turkey37.1-1.79%23.413.71.92%
U.A.E.8.5-34.94%8.30.20.00%
Vietnam-0.6-178.89%-1.20.50.09%
China and Hong Kong117.8215.66%116.31.50.53%
================================================================================
*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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