Emerging Market ETFs Snap 6-Week Losing Streak; Indonesia Leadsby
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 Week||Flow %||Equity||Bond||FX|
|Region||End Feb. 19||Change||Flow||Flow||Change|
|Total EM Flow||242.0||155.5%||96.2||145.8||n/a|
|China and Hong Kong||-27.7||53.32%||-27.3||-0.5||0.80%|
|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.|