Emerging Market ETF Gains Slow as 8-Week Streak Adds $10 Billion

The Varied Troubles Facing Emerging Market Economies

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 WeekFlow %EquityBondFX
RegionEnd April 8ChangeFlowFlowChange
================================================================================
Total EM Flow402.8-63.9%161.9240.8n/a
India47.0-15.81%46.60.4-0.33%
Taiwan26.8-75.91%26.80.0-0.56%
South Africa24.6-69.22%16.97.7-1.86%
Brazil22.783.87%12.710.0-1.02%
Indonesia22.6-1.89%13.88.80.17%
Turkey19.3-48.06%9.99.4-1.00%
Malaysia18.6-66.50%16.81.8-0.28%
Singapore13.0n/a12.70.30.13%
Philippines11.8-45.03%3.78.1-0.19%
Poland11.6-54.00%3.08.6-1.00%
Thailand10.4-65.13%8.71.70.18%
South Korea10.3-91.11%0.010.30.02%
Peru9.7-34.06%2.86.9-0.79%
Colombia9.0-34.41%1.87.2-1.71%
Chile8.6-55.63%8.00.6-2.03%
Qatar6.9-20.64%0.26.70.00%
China and Hong Kong6.0-69.12%5.60.40.28%
U.A.E.1.0-88.61%0.80.20.00%
Argentina0.8-86.93%0.00.82.17%
Egypt0.6-75.46%0.50.1-0.05%
Nigeria0.5n/a0.20.4-0.01%
Vietnam0.1122.93%0.10.00.00%
Russia-0.893.52%-10.59.60.84%
Mexico-15.9-123.07%-25.69.7-2.46%
================================================================================
*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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