Emerging Market ETF Inflows Almost Double in 9th Week of Gains

Investment flows into U.S. exchange traded funds that buy emerging-market stocks and bonds almost doubled, extending the longest winning streak since last May to nine weeks.

Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries rose to $706.5 million in the week ended April 15 from $373.2 million in the previous period, according to data compiled by Bloomberg. The funds gained $10.7 billion in the nine-week stretch and have added a total of $5 billion this year after suffering losses at the start of 2016. The last time the funds had longer gains was in the 11 weeks that ended May 29.

Last week, stock funds collected $342.3 million and bond funds advanced by $364.2 million. The MSCI Emerging Markets Index advanced 3.7 percent in the week.

The biggest change was in Brazil, where funds collected $116.4 million, compared with $13.1 million of inflows the previous week. Investors contributed $100.6 million to stock funds and $15.8 million to bonds.

The Ibovespa Index advanced 5.8 percent. The real strengthened 1.7 percent against the dollar and implied three-month volatility is 22.1 percent.

Turkey had the next-biggest change, with ETF investors adding $41.8 million, compared with $6.3 million of inflows the previous week. Stock funds grew by $23.2 million and bond ETFs increased by remained unchanged.

The Borsa Istanbul 100 Index gained 3.7 percent. The lira depreciated 0.17 percent against the dollar and implied three-month volatility is 11.75 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 15ChangeFlowFlowChange
================================================================================
Total EM Flow706.589.3%342.3364.2n/a
Brazil116.4786.48%100.615.81.65%
Turkey41.8564.03%23.218.6-0.17%
Mexico40.4408.66%16.224.21.27%
Russia37.9n/a21.516.40.95%
Taiwan35.920.20%35.90.00.32%
Malaysia32.357.72%22.110.2-0.04%
South Africa29.221.23%16.113.12.92%
Indonesia26.81.83%8.218.6-0.26%
Peru25.0125.94%12.612.42.84%
Philippines23.678.94%5.118.5-0.04%
India23.4-49.41%23.40.0-0.27%
Singapore18.2-0.06%18.20.0-0.62%
Poland17.544.02%3.813.7-0.95%
Colombia15.934.06%1.514.33.10%
Thailand14.3220.17%13.60.70.16%
Chile10.811.40%4.46.42.44%
South Korea10.616.42%7.63.00.66%
Argentina9.7379.30%0.09.73.09%
China and Hong Kong4.3171.94%1.62.7-0.18%
Egypt2.9230.11%0.72.20.10%
Qatar2.5-59.34%1.21.30.00%
Vietnam0.9285.44%0.00.9-0.04%
Nigeria0.0-100.00%0.00.00.22%
U.A.E.-1.8-223.94%-1.80.00.00%
================================================================================
*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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