(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
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Americas
Asia Pacific
Europe, Middle East & Africa
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