Investors withdrew the most money from Brazil, notably the $1.6 billion iShares Latin America 40 ETF, known as ILF
Inflows to emerging-market exchange-traded funds (ETFs) slowed last week as the spread of the delta variant and prospects for faster monetary policy tightening dragged on demand for risky assets.
Investors added $190.3 million to US-listed emerging market ETFs that invest across developing nations as well as those that target specific countries in the week ended August 6, compared with gains of $400.2 million in the previous week, according to data compiled by Bloomberg.
It was the smallest addition since funds lost money four weeks ago, in a year that has seen inflows totaling $34.8 billion. Debt funds added $175.7 million last week, while those that invest in stocks received just $14.6 million.
In China, the growth implications of rising Covid infections were tempered by investors buying what’s left of a dip in companies impacted by a regulatory crackdown. The $5.1 billion KraneShares CSI China Internet ETF, or KWEB, received $211.9 million last week.
The $20.8 billion iShares JP Morgan USD Emerging Markets Bond ETF, or EMB, was another big winner, luring $168.2 million in fresh investment.
Still, its inflows slowed on Friday, when a better-than-expected US payrolls report sparked speculation that the Federal Reserve may accelerate its schedule for tighter monetary policy.
Investors withdrew the most money from Brazil, notably the $1.6 billion iShares Latin America 40 ETF, known as ILF. The fund lost $104.9 million, its biggest outflow since November of 2019.
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