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ETF Inflows Shrink After Fed Signal

EMERGING MARKETS
  • Exchange-traded funds that buy emerging market stocks and bonds recorded inflows for a 33rd straight week. The weekly pace of increases, however, shrunk to just $10.7 million, the smallest level since October 2020 and down from gains of $1.53 billion in the previous week.
  • Additionally, developing-world equity ETFs actually had withdrawals of $24 million.
  • Inflows were driven by emerging debt funds. The $3 billion Vanguard Emerging Markets Government Bond ETF, known as VWOB, had a $48 million addition, the most since February, according to data compiled by Bloomberg.
  • The MSCI Emerging Markets Index closed down 1.5 percent from the previous week at 1,361.25 points. Total assets fell to $360.2 billion from $366.9 billion.
    • China/Hong Kong had the biggest inflow, of $194.5 million, led by Schwab Emerging Markets Equity.
    • South Korea had the biggest outflow, of $123.5 million, following withdrawals from iShares MSCI South Korea.

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