Investor inflows to U.S. exchange traded funds that buy emerging market stocks and bonds slowed in the week ended Feb. 26, though ETFs posted the first back-to-back increases this year.
Deposits into emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $139.4 million, down from $242 million in the previous week, according to data compiled by Bloomberg. So far this year, the funds are down $5.35 billion.
Last week, stock funds collected $14.8 million and bond funds advanced by $124.6 million. The MSCI Emerging Markets Index declined 0.1 percent in the week.
The biggest change was in Mexico, where funds shrank by $16 million, compared with $30.3 million of inflows the previous week. Investors withdrew $25.3 million from stock funds and added $9.3 million to bonds.
The Mexico IPC Index advanced 0.2 percent. The peso weakened 0.29 percent against the dollar and implied three-month volatility is 13.2 percent.
Indonesia had the next-biggest change, with ETF investors adding $14.9 million, compared with $51.2 million of inflows the previous week. Stock funds grew by $7.3 million and bond ETFs increased by $7.5 million.
The Jakarta Composite Index gained 0.8 percent. The rupiah appreciated 0.95 percent against the dollar and implied three-month volatility is 12.01 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 Feb. 26||Change||Flow||Flow||Change|
|Total EM Flow||139.4||-42.4%||14.8||124.6||n/a|
|China and Hong Kong||-34.4||-46.05%||-33.1||-1.4||-0.28%|
|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.|