Emerging markets take over

Emerging markets take over

Emerging markets take over It has been the longest winning streak for emerging market ETFs since May – with investors pouring an eye-catching $1.67 billion into the area during the last week alone.

Inflows for ETFs that focus on bonds and stocks in emerging markets have increased for four successive weeks, according to a Bloomberg report. This represents the longest successive period of uninterrupted increases since an 11-week surge that ended in May last year.

Gains were not quite at the level of the prior week, however. Inflows during that week totalled $2.31 billion – the highest level since April of 2014. Overall however, this week’s results have helped reduce net outflows for the year down to $1.36 billion.

The focus of the increases was in Hong Kong and China with funds reaching $233.8 million – up from $50.4 million one week earlier. Stock funds leapt by $232.4 million, while bond funds enjoyed an increase of $1.5 million.

At the opposite end of the scale, inflows into Mexico slowed – dropping from $240.5 million to $104.4 million. From this total, $83.5 million came from stock funds with a further $20.9 million from bonds.

Overall, flows into emerging market funds in the first part of March are at their highest levels since 2013.