Emerging Market ETFs Snap 6-Week Losing Streak; Indonesia Leads

U.S. exchange traded funds that invest in emerging markets snapped a six-week losing streak, led by inflows to Indonesia and Mexico.

Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $242 million in the week ended Feb. 19 compared with withdrawals of $436.3 million in the previous period, according to data compiled by Bloomberg. Even with the gains, the funds declined by $5.49 billion so far this year in the longest stretch of losses since the 11 weeks that ended Sept. 11, the data show.

Last week, stock funds collected $96.2 million and bond funds added $145.8 million. The MSCI Emerging Markets Index advanced 4.2 percent in the week.

The biggest change was in Indonesia, where funds collected $51.2 million, compared with $38.7 million of inflows the previous week. Investors contributed $44.2 million to stock funds and $7 million to bonds.

The Jakarta Composite Index declined 0.4 percent. The rupiah weakened 0.14 percent against the dollar and implied three-month volatility is 12.51 percent.

Mexico had the next-biggest change, with ETF investors adding $30.3 million, compared with $39.8 million of outflows the previous week. Stock funds grew by $21.3 million and bond ETFs increased by $9.1 million.

The Mexico IPC Index gained 2.3 percent. The peso appreciated 3.8 percent against the dollar and implied three-month volatility is 14.95 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 Feb. 19ChangeFlowFlowChange
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Total EM Flow242.0155.5%96.2145.8n/a
Indonesia51.232.57%44.27.0-0.14%
Mexico30.3176.33%21.39.13.77%
Russia28.9189.26%22.26.72.16%
Poland14.3229.81%8.85.5-0.55%
Chile12.52.05%10.12.30.84%
Philippines12.4203.34%5.47.00.05%
India10.9129.02%10.90.0-0.34%
Turkey7.6151.93%0.37.3-0.73%
South Africa6.8128.99%1.85.03.14%
Brazil6.7184.36%1.45.4-0.47%
Colombia5.5168.39%0.25.30.80%
Peru4.9180.73%0.14.8-0.24%
Malaysia4.5133.93%0.83.7-1.05%
Argentina3.7177.24%0.03.7-1.86%
Thailand2.9154.88%2.90.0-0.41%
Taiwan1.4104.84%1.40.0-0.70%
Egypt1.0166.82%0.10.90.06%
Qatar0.8179.46%0.00.8-0.02%
U.A.E.0.4124.22%0.40.00.00%
South Korea0.0100.56%-0.70.7-1.85%
Nigeria0.0100.00%0.00.00.29%
Singapore0.099.94%0.00.0-0.52%
Vietnam-6.5-568.59%-6.80.4-0.14%
China and Hong Kong-27.753.32%-27.3-0.50.80%
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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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