Emerging Market ETF Inflows Top $11 Billion in 10-Week Streakby
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 Week||Flow %||Equity||Bond||FX|
|Region||End April 22||Change||Flow||Flow||Change|
|Total EM Flow||658.8||-6.7%||604.4||54.5||n/a|
|China and Hong Kong||-1.2||68.78%||0.3||-1.5||-0.37%|
|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.|