Emerging Market ETFs Lose More Than $1 Billion Led by China Flowby
Investors pulled more than $1 billion out of U.S. exchange-traded funds that invest in emerging-markets as a third week of outflows left the ETFs down $3.9 billion this month.
Redemptions from emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $1.17 billion in the week ended Jan. 22, according to data compiled by Bloomberg. While losses narrowed from $2.12 billion the previous week, the outflows so far this month are the most since August, when they reached $6.1 billion.
Stock funds lost $1.12 billion and bond funds declined by $51.9 million. The MSCI Emerging Markets Index advanced 0.2 percent in the week.
The biggest change was in China and Hong Kong, where funds shrank by $328.1 million, compared with $146.8 million of redemptions the previous week. Investors withdrew $327.3 million from stock funds and $800,000 from bonds.
The Shanghai Composite Index advanced 0.5 percent. The yuan strengthened 0.09 percent against the dollar and implied three-month volatility is 7.33 percent.
Taiwan had the next-biggest change, with ETF investors redeeming $185.1 million, compared with $302.8 million of outflows the previous week. All the losses came from stocks.
The Taiex lost 0.1 percent. The Taiwan dollar appreciated 0.42 percent against the dollar and implied three-month volatility is 7.85 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 Week||Flow %||Equity||Bond||FX|
|Region||End Jan. 22||Change||Flow||Flow||Change|
|Total EM Flow||-1,168.1||-45.0%||-1,116.2||-51.8||n/a|
|China and Hong Kong||-328.1||-123.51%||-327.3||-0.8||0.09%|
|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.|