Biden’s Victory Triggers Largest EM ETFs Inflows in 10 Months

Investors added the most money to emerging-market exchange-traded funds in 10 months as Joe Biden’s victory in the U.S. election boosted investor appetite for risk assets.

U.S.-listed ETFs that invest across developing nations as well as those that target specific countries received $2.36 billion in net flows in the week ended Nov. 6, compared with losses of $101.3 million in the previous week, according to data compiled by Bloomberg. That was the biggest weekly inflow since Jan. 17 and it helped trim year-to-date outflows to $10.4 billion.

Biden’s Victory Triggers Largest EM ETFs Inflows in 10 Months

Inflows were led by the second biggest emerging-market stocks ETF, the $58.9 billion iShares Core MSCI Emerging Markets ETF, or IEMG, which received $932 million, the most for a week since December. The other big contribution came from the bonds side: the $18.3 billion iShares JP Morgan USD Emerging Markets Bond ETF, known as EMB, posted a $768 million inflow, the largest since June.

On a country level, the biggest beneficiary was China, which has the largest weighting in the top funds. The nation’s assets also got money through the $3.8 billion KraneShares CSI China Internet ETF, or KWEB, which received $189 million, the most since January.

Developing-nation stocks climbed to the highest level in more than two years last week, propelled by the prospect of a Biden victory. The Democrat candidate, who pledged to unify the nation this weekend, is expected to come up with a fiscal stimulus package that would boost the amount of dollars in the global economy, increasing demand for risk assets.

  • Stock ETFs expanded by $1.64 billion.
  • Bond funds rose by $715.8 million.
  • Total assets rose to $273.8 billion from $255.9 billion.
  • The MSCI Emerging Markets Index closed up 6.6 percent from the previous week at 1,176.36 points, the highest level since Apr 19, 2018.
  • China/Hong Kong had the biggest inflow, of $842.3 million, led by iShares Core MSCI Emerging Markets.
  • No individual country suffered an outflow.

Click here for Bloomberg’s ETF screening applications.

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

RegionFlow WeekEquity FlowBond FlowTotal Assets (USD Bln)
Total EM2,355.91,640.1715.8273.8
Americas353.7122.2231.631.7
Asia Pac1,476.31,337.5138.8202.1
EMEA525.9180.5345.440.0

Click here for Bloomberg’s ETF Excel library.

Americas

CountryFlow WeekEquity FlowBond FlowTotal Assets
Mexico109.565.943.66,369.7
Brazil65.638.027.617,295.1
Chile34.911.024.02,491.0
Colombia29.81.428.41,543.1
Panama25.90.025.9747.0
Peru24.92.422.51,185.4
Uruguay19.10.119.1552.0
Argentina15.23.511.7650.0
Ecuador11.40.011.4292.3
Jamaica6.80.06.8176.3
Costa Rica4.80.04.8184.3
Paraguay3.50.03.5172.6
Trinidad & Tobago1.10.01.131.6
Bolivia0.90.00.925.9
Venezuela0.30.00.36.8
Belize0.00.00.00.4

Asia Pacific

CountryFlow WeekEquity FlowBond FlowTotal Assets
China/Hong Kong842.3827.315.0107,400.1
Taiwan163.4163.40.032,927.7
South Korea161.9161.10.919,309.6
India84.580.63.922,459.3
Indonesia73.933.640.44,838.3
Malaysia43.527.216.25,105.6
Philippines38.28.929.32,803.2
Thailand35.234.80.45,510.5
Kazakhstan19.00.019.0564.6
Sri Lanka7.70.07.7249.6
Pakistan5.20.64.6347.3
Vietnam1.30.01.3478.0
Mongolia0.20.00.246.4
Bangladesh0.00.00.023.4

Europe, Middle East & Africa

CountryFlow WeekEquity FlowBond FlowTotal Assets
Russia92.662.630.08,446.8
South Africa66.544.522.18,751.1
Saudi Arabia57.425.132.36,546.5
Qatar41.87.234.62,686.2
Turkey36.57.529.02,279.2
Poland29.921.88.11,521.6
U.A.E.29.55.124.41,889.6
Egypt23.71.122.6940.3
Oman20.80.020.8623.8
Bahrain20.50.020.5678.3
Ukraine17.00.017.0510.4
Hungary12.62.310.4948.2
Romania11.80.311.5614.6
Nigeria11.50.011.5457.3
Ghana10.20.010.2261.1
Kenya7.10.07.1289.5
Kuwait6.20.16.1801.0
Jordan5.80.05.8225.4
Croatia4.50.04.5151.4
Ivory Coast4.10.04.1104.8
Iraq3.70.03.795.8
Senegal2.60.02.667.3
Greece2.02.00.0512.5
Morocco1.70.01.7102.6
Lebanon1.30.01.335.6
Czech Republic1.21.00.2399.3
Zambia1.20.01.230.8
Gabon1.10.01.131.0
Tunisia1.00.01.026.1
Mauritius0.00.00.014.3
Lithuania0.00.00.00.2
Slovakia0.00.00.00.2
Mozambique0.00.00.01.1

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.