By Amanda Leek
Emerging market (EM) funds attracted new money in the fourth straight week of positive flows last week, but with all investment coming from ETF investors, according to a report published by EPFR Global.
In the last week, $743 million was added to EM ETFs, while $348 million was cut from traditional funds, said the report. To date in August, ETF investors have added $3.4 billion to EM funds or almost 95% of total allocation to all EM funds.
ETF flows now account for almost all EM allocations. ETF flows and ETF exposure to EM assets has been steadily increasing as redemptions from the more traditional retail funds have also risen.
Investors also appear to remain wary of specific country bets and withdrew a net $20 million from Russia funds in the last week, reversing the previous week’s inflow of $23 million. However within that ETF investors added $25 million. Among country-specific funds, only South Korea attracted big money ($233 million via an ETF), while all others reported modest positive or negative flows.