Emerging Market ETFs Lose Investors for 6th Week, Led by Chinaby
Investors pulled money out of U.S. exchange traded funds that buy emerging-market stocks and bonds for the sixth straight week, bringing this year’s total losses to $5.73 billion.
Redemptions from emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $436.3 million in the week ended Feb. 12 compared with withdrawals of $1.16 billion in the previous period, according to data compiled by Bloomberg. The losing streak is the longest since the 11 weeks that ended Sept. 11.
Last week, stock funds lost $262.8 million and bond funds declined by $173.5 million. The MSCI Emerging Markets Index fell 3.8 percent in the week.
The biggest change was in China and Hong Kong, where funds shrank by $108.7 million, compared with $231.2 million of redemptions the previous week. Investors withdrew $106.6 million from stock funds and $2.1 million from bonds.
The Shanghai Composite Index remained unchanged. The yuan was little changed against the dollar and implied three-month volatility is 8.25 percent.
Mexico had the next-biggest change, with ETF investors redeeming $39.8 million, compared with $26.1 million of outflows the previous week. Stock funds fell by $28.2 million and bond ETFs decreased by $11.6 million.
The Mexico IPC Index lost 1.9 percent. The peso depreciated 2.5 percent against the dollar and implied three-month volatility is 15.38 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 Feb. 12||Change||Flow||Flow||Change|
|Total EM Flow||-436.3||-62.4%||-262.8||-173.5||n/a|
|China and Hong Kong||-108.7||52.98%||-106.6||-2.1||0.00%|
|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.|