Investors Add $1 Billion to Emerging-Market ETFs Amid Trade Hope

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    By Aline Oyamada

    Emerging-market ETFs received highest inflow since February
    Inflow happened before Trump cooled some of the optimism

    Optimism about a trade deal between the U.S. and China encouraged investors add money to emerging-market exchange-traded funds last week at the fastest pace in nine months.

    Inflows to U.S.-listed emerging market ETFs that invest across developing nations — as well as those that target specific countries — totaled $1.06 billion in the week ended Nov. 8, adding to gains of $1.05 billion in the previous week, according to data compiled by Bloomberg. This was the fifth straight week of inflows and the biggest weekly one since Feb. 22. So far this year, inflows have totaled $3.61 billion.

    *Includes ETFs that invest across developing nations as well as those that target specific countries

    Money flew into the main developing-nation ETFs, benefiting Chinese equities that represent a larger portion of these funds. BlackRock’s $27 billion iShares MSCI Emerging Markets ETF, known as EEM, received $354 million, the biggest inflow since February, while its bonds counterpart, the $14.9 billion iShares JP Morgan USD Emerging Markets Bond ETF, known as EMB, had a $326 million inflow.

    Hopes for a first-phase deal between the U.S. and China fueled a risk rally last week, before President Donald Trump’s comments over the weekend cooled some of the optimism. Emerging-market stocks rose for a fifth straight week last week, the longest winning streak since July, even as gains were trimmed on Friday when President Donald Trump said the U.S. hadn’t agreed to roll back tariffs in phases as earlier reported.

    Following are tables detailing net flows for emerging-market ETFs in US dollars. The data include the holdings-weighted allocations from multi-country funds, as well as country-specific funds(figures in USD millions unless otherwise stated):
    Regional Summary
    Region Flow Week Equity Flow Bond Flow Total Assets (USD Bln)
    Total EM 1,059.7 736.2 323.6 266.2
    Americas 141.7 39.6 102.1 43.3
    Asia Pac 658.8 591.4 67.5 176.9
    EMEA 259.2 105.1 154.0 46.0

    Click here for Bloomberg’s ETF Excel library.
    Americas
    Country Flow Week Equity Flow Bond Flow Total Assets
    Mexico 38.9 16.8 22.0 7,811.4
    Brazil 35.0 19.5 15.5 26,199.0
    Chile 15.9 8.2 7.8 2,968.2
    Colombia 13.4 0.8 12.7 1,931.3
    Argentina 11.0 6.1 4.9 642.2
    Uruguay 9.2 0.0 9.2 622.6
    Ecuador 8.2 0.0 8.2 564.9
    Panama 6.2 0.0 6.2 474.3
    Jamaica 3.4 0.0 3.4 166.6
    Costa Rica 1.2 0.0 1.2 175.4
    Venezuela 0.8 0.0 0.8 40.3
    Bolivia 0.5 0.0 0.5 26.6
    Paraguay 0.1 0.0 0.1 133.0
    Trinidad & Tobago 0.0 0.0 0.0 123.1
    Belize 0.0 0.0 0.0 0.3
    Peru -2.2 -11.7 9.5 1,425.4
    Asia Pacific
    Country Flow Week Equity Flow Bond Flow Total Assets
    China/Hong Kong 315.6 310.4 5.2 79,411.2
    Taiwan 107.8 107.8 0.0 28,959.5
    South Korea 47.8 46.4 1.4 17,625.8
    Thailand 43.3 39.0 4.3 7,617.8
    Indonesia 38.5 18.9 19.6 6,101.6
    India 37.5 36.1 1.4 25,897.7
    Philippines 34.1 21.4 12.7 3,469.7
    Malaysia 17.6 11.3 6.4 5,653.0
    Kazakhstan 8.0 0.0 8.0 556.2
    Sri Lanka 6.2 0.0 6.2 483.8
    Pakistan 1.6 0.0 1.5 386.7
    Vietnam 0.6 0.0 0.6 577.8
    Mongolia 0.1 0.0 0.1 117.9
    Bangladesh 0.0 0.0 0.0 32.3
    Europe, Middle East & Africa
    Country Flow Week Equity Flow Bond Flow Total Assets
    Russia 62.9 48.9 14.0 11,209.9
    South Africa 42.5 29.8 12.7 10,629.8
    Saudi Arabia 21.6 10.3 11.3 5,200.4
    Turkey 18.4 4.4 14.1 2,846.5
    Qatar 17.7 6.0 11.6 2,739.9
    U.A.E. 11.4 3.3 8.1 2,073.0
    Egypt 9.3 0.9 8.5 1,005.5
    Oman 8.0 0.0 8.0 537.8
    Bahrain 7.9 0.0 7.9 619.0
    Hungary 7.8 1.7 6.0 1,177.2
    Ukraine 7.4 0.0 7.4 549.3
    Poland 6.3 -1.8 8.1 2,173.9
    Romania 5.5 0.3 5.3 677.1
    Nigeria 5.1 0.0 5.1 460.7
    Kuwait 3.4 0.6 2.8 824.5
    Ghana 3.2 0.0 3.2 160.2
    Lebanon 2.7 0.0 2.7 220.4
    Kenya 2.7 0.0 2.7 310.8
    Czech Republic 2.5 0.9 1.6 512.0
    Iraq 2.1 0.0 2.1 102.6
    Ivory Coast 1.9 0.0 1.9 96.0
    Croatia 1.6 0.0 1.6 212.3
    Jordan 1.2 0.0 1.2 191.1
    Senegal 1.2 0.0 1.2 61.5
    Zambia 0.9 0.0 0.9 45.5
    Morocco 0.9 0.0 0.9 116.2
    Gabon 0.9 0.0 0.9 45.1
    Slovakia 0.9 0.0 0.9 41.4
    Lithuania 0.9 0.0 0.9 54.5
    Tunisia 0.6 0.0 0.6 28.3
    Mauritius 0.1 0.0 0.1 10.8
    Serbia 0.0 0.0 0.0 3.7
    Mozambique 0.0 0.0 0.0 0.6
    Greece -0.2 -0.2 0.0 973.8
    Slovenia -0.3 0.0 -0.3 44.3

    This story was produced with the assistance of Bloomberg Automation.

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    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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