Emerging Market ETF Inflows Top $11 Billion in 10-Week Streak

Investors added money to U.S. exchange-traded funds that buy emerging-market stocks and bonds for the 10th straight week, bringing the gains since mid-February to more than $11 billion. 

Deposits into ETFs that invest across developing nations as well as those that target specific countries totaled $658.8 million in the week ended April 22, compared with inflows of $706.5 million in the previous period, according to data compiled by Bloomberg. The current streak is the longest since the 11 weeks that ended last May 29.

Stock funds collected $604.4 million last week and bond funds advanced by $54.5 million. The MSCI Emerging Markets Index declined 0.2 percent in the week.

The biggest change was in Brazil, where funds collected $162.4 million, compared with $15.8 million of inflows the previous week. Investors contributed $158.9 million to stock funds and $3.6 million to bonds.

The Ibovespa declined 0.6 percent. The real weakened 1 percent against the dollar and implied three-month volatility is 20 percent.

South Korea had the next-biggest change, with ETF investors adding $81.6 million, compared with $10.6 million of inflows the previous week. Stock funds grew by $80.6 million and bond ETFs by $1 million.

The Kospi remained unchanged. The won appreciated 0.3 percent against the dollar and implied three-month volatility is 11.26 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 22ChangeFlowFlowChange
================================================================================
Total EM Flow658.8-6.7%604.454.5n/a
Argentina0.8-91.33%1.8-1.0-1.76%
Brazil162.4929.43%158.93.6-0.96%
Chile12.718.22%12.30.4-0.27%
Colombia4.6-70.82%2.71.91.70%
Egypt4.761.77%4.9-0.3-0.17%
India57.2144.42%56.90.30.24%
Indonesia30.112.32%27.22.9-0.12%
Malaysia45.842.00%44.11.70.06%
Mexico46.414.83%43.92.40.45%
Nigeria0.0n/a0.00.0-0.10%
Peru7.6-69.82%6.60.90.24%
Philippines6.4-72.82%6.10.3-1.10%
Poland10.1-42.24%7.42.7-2.22%
Qatar7.5197.47%6.11.40.01%
Russia-47.1-224.38%-48.71.6-0.07%
Singapore15.5-14.75%15.50.00.23%
South Africa37.026.71%34.82.21.09%
South Korea81.6671.25%80.61.00.26%
Taiwan70.796.75%70.70.0-0.01%
Thailand23.060.49%20.42.6-0.10%
Turkey28.0-33.17%25.52.40.21%
U.A.E.6.7479.95%6.40.40.00%
Vietnam-0.1-109.98%0.0-0.10.12%
China and Hong Kong-1.268.78%0.3-1.5-0.37%
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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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