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ETF Inflow Streak At $44.9Billion, Weekly Increase Accelerates

EMERGING MARKETS
  • Exchange-traded funds that buy emerging market stocks and bonds recorded inflows for a 30th straight week. The pace of increases had been decelerating towards the end of April, but saw consistent acceleration throughout May (shown below), culminating in last week's figures representing the biggest inflow in two months.
  • Last week, investors added $1.74 billion to U.S.-listed emerging market ETFs that invest across developing nations as well as those that target specific countries. This is compared with gains of $1.03 billion in the previous week.
  • The $82.5 billion Vanguard FTSE Emerging Markets ETF, or VWO, scored the largest inflow in three months with $904 million, accounting for more than half of the money poured into emerging markets through ETFs last week.
    • Stock ETFs expanded by $1.55 billion.
    • Bond funds rose by $191.5 million.
    • The MSCI Emerging Markets Index closed up 2.3% from the previous week.
    • China and Hong Kong took in the largest share with $991.4 million
    • Brazil had the biggest outflow, of $36.7 million, following withdrawals from iShares MSCI Brazil. Chile was the only other country to see net outflows.

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