Emerging Market ETF Gains Slow as 8-Week Streak Adds $10 Billionby
Investors added $402.8 million to U.S. exchange traded funds that buy emerging market stocks and bonds last week as inflows slowed after seven straight gains.
Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries were down from $1.11 billion the previous period, according to data compiled by Bloomberg. The eight-week streak, the longest since May, has pumped more than $10 billion into the funds.
Last week, stock ETFs increased by $161.9 million and bond funds by $240.8 million. The MSCI Emerging Markets Index declined 1.1 percent.
The biggest inflows were in India, where funds collected $47 million, compared with $55.8 million the previous week. Investors contributed $46.6 million to stock funds and $400,000 to bonds.
The S&P BSE Sensex declined 2.4 percent. The rupee weakened 0.33 percent against the dollar and implied three-month volatility is 6.8 percent.
The biggest slowdown was in South Korea, where funds added $10.3 million, down from $115.5 million. All the new investment went to bonds.
The Kospi declined 0.1 percent. The won was little changed and implied three-month volatility is 11.65 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 8||Change||Flow||Flow||Change|
|Total EM Flow||402.8||-63.9%||161.9||240.8||n/a|
|China and Hong Kong||6.0||-69.12%||5.6||0.4||0.28%|
|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.|