Emerging Market ETF Inflows Surge to $9 Billion in Record Monthby
Investors pumped more than $1 billion into U.S. exchange traded funds that buy emerging market stocks and bonds last week, bringing the month’s inflows to a record $9 billion.
Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $1.11 billion in the week ended April 1, compared with $1.44 billion the previous period, according to data compiled by Bloomberg.
March’s total of $9.09 billion was the most in records going back to the start of 2014 and more than made up for losses of $5.29 billion in the first two months of the year. For the first quarter, emerging market ETFs added $3.8 billion, the most since $7.41 billion in last year’s second quarter, the data show.
Last week, stock funds collected $866.1 million and bond funds advanced by $248.1 million. The MSCI Emerging Markets Index advanced 1.7 percent in the week.
The biggest change was in Brazil, where funds collected $198.3 million, compared with $12.9 million of inflows the previous week. Investors contributed $186 million to stock funds and $12.4 million to bonds.
The Ibovespa Index advanced 1.8 percent. The real strengthened 3.5 percent against the dollar and implied three-month volatility is 22.25 percent.
China and Hong Kong had the next-biggest change, with ETF investors adding $117.8 million, compared with $37.3 million of inflows the previous week. Stock funds grew by $116.3 million and bond ETFs increased by $1.5 million.
The Shanghai Composite Index gained 1 percent. The yuan appreciated 0.53 percent against the dollar and implied three-month volatility is 6.28 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 April 1||Change||Flow||Flow||Change|
|Total EM Flow||1,114.2||-22.8%||866.1||248.1||n/a|
|China and Hong Kong||117.8||215.66%||116.3||1.5||0.53%|
|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.|