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

Date:

By Aline Oyamada

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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.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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