Biden’s Victory Triggers Largest EM ETFs Inflows in 10 Months
Biden’s Victory Triggers Largest EM ETFs Inflows in 10 Months
(Bloomberg) -- 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.
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.
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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 | 2,355.9 | 1,640.1 | 715.8 | 273.8 |
Americas | 353.7 | 122.2 | 231.6 | 31.7 |
Asia Pac | 1,476.3 | 1,337.5 | 138.8 | 202.1 |
EMEA | 525.9 | 180.5 | 345.4 | 40.0 |
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Americas
Country | Flow Week | Equity Flow | Bond Flow | Total Assets |
---|---|---|---|---|
Mexico | 109.5 | 65.9 | 43.6 | 6,369.7 |
Brazil | 65.6 | 38.0 | 27.6 | 17,295.1 |
Chile | 34.9 | 11.0 | 24.0 | 2,491.0 |
Colombia | 29.8 | 1.4 | 28.4 | 1,543.1 |
Panama | 25.9 | 0.0 | 25.9 | 747.0 |
Peru | 24.9 | 2.4 | 22.5 | 1,185.4 |
Uruguay | 19.1 | 0.1 | 19.1 | 552.0 |
Argentina | 15.2 | 3.5 | 11.7 | 650.0 |
Ecuador | 11.4 | 0.0 | 11.4 | 292.3 |
Jamaica | 6.8 | 0.0 | 6.8 | 176.3 |
Costa Rica | 4.8 | 0.0 | 4.8 | 184.3 |
Paraguay | 3.5 | 0.0 | 3.5 | 172.6 |
Trinidad & Tobago | 1.1 | 0.0 | 1.1 | 31.6 |
Bolivia | 0.9 | 0.0 | 0.9 | 25.9 |
Venezuela | 0.3 | 0.0 | 0.3 | 6.8 |
Belize | 0.0 | 0.0 | 0.0 | 0.4 |
Asia Pacific
Country | Flow Week | Equity Flow | Bond Flow | Total Assets |
---|---|---|---|---|
China/Hong Kong | 842.3 | 827.3 | 15.0 | 107,400.1 |
Taiwan | 163.4 | 163.4 | 0.0 | 32,927.7 |
South Korea | 161.9 | 161.1 | 0.9 | 19,309.6 |
India | 84.5 | 80.6 | 3.9 | 22,459.3 |
Indonesia | 73.9 | 33.6 | 40.4 | 4,838.3 |
Malaysia | 43.5 | 27.2 | 16.2 | 5,105.6 |
Philippines | 38.2 | 8.9 | 29.3 | 2,803.2 |
Thailand | 35.2 | 34.8 | 0.4 | 5,510.5 |
Kazakhstan | 19.0 | 0.0 | 19.0 | 564.6 |
Sri Lanka | 7.7 | 0.0 | 7.7 | 249.6 |
Pakistan | 5.2 | 0.6 | 4.6 | 347.3 |
Vietnam | 1.3 | 0.0 | 1.3 | 478.0 |
Mongolia | 0.2 | 0.0 | 0.2 | 46.4 |
Bangladesh | 0.0 | 0.0 | 0.0 | 23.4 |
Europe, Middle East & Africa
Country | Flow Week | Equity Flow | Bond Flow | Total Assets |
---|---|---|---|---|
Russia | 92.6 | 62.6 | 30.0 | 8,446.8 |
South Africa | 66.5 | 44.5 | 22.1 | 8,751.1 |
Saudi Arabia | 57.4 | 25.1 | 32.3 | 6,546.5 |
Qatar | 41.8 | 7.2 | 34.6 | 2,686.2 |
Turkey | 36.5 | 7.5 | 29.0 | 2,279.2 |
Poland | 29.9 | 21.8 | 8.1 | 1,521.6 |
U.A.E. | 29.5 | 5.1 | 24.4 | 1,889.6 |
Egypt | 23.7 | 1.1 | 22.6 | 940.3 |
Oman | 20.8 | 0.0 | 20.8 | 623.8 |
Bahrain | 20.5 | 0.0 | 20.5 | 678.3 |
Ukraine | 17.0 | 0.0 | 17.0 | 510.4 |
Hungary | 12.6 | 2.3 | 10.4 | 948.2 |
Romania | 11.8 | 0.3 | 11.5 | 614.6 |
Nigeria | 11.5 | 0.0 | 11.5 | 457.3 |
Ghana | 10.2 | 0.0 | 10.2 | 261.1 |
Kenya | 7.1 | 0.0 | 7.1 | 289.5 |
Kuwait | 6.2 | 0.1 | 6.1 | 801.0 |
Jordan | 5.8 | 0.0 | 5.8 | 225.4 |
Croatia | 4.5 | 0.0 | 4.5 | 151.4 |
Ivory Coast | 4.1 | 0.0 | 4.1 | 104.8 |
Iraq | 3.7 | 0.0 | 3.7 | 95.8 |
Senegal | 2.6 | 0.0 | 2.6 | 67.3 |
Greece | 2.0 | 2.0 | 0.0 | 512.5 |
Morocco | 1.7 | 0.0 | 1.7 | 102.6 |
Lebanon | 1.3 | 0.0 | 1.3 | 35.6 |
Czech Republic | 1.2 | 1.0 | 0.2 | 399.3 |
Zambia | 1.2 | 0.0 | 1.2 | 30.8 |
Gabon | 1.1 | 0.0 | 1.1 | 31.0 |
Tunisia | 1.0 | 0.0 | 1.0 | 26.1 |
Mauritius | 0.0 | 0.0 | 0.0 | 14.3 |
Lithuania | 0.0 | 0.0 | 0.0 | 0.2 |
Slovakia | 0.0 | 0.0 | 0.0 | 0.2 |
Mozambique | 0.0 | 0.0 | 0.0 | 1.1 |
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