Emerging markets ETF Fund Flows – More bad news on outflows – Could = SQUEEZE
Emerging markets ETF outflows as measured through the iShares MSCI Emerging Markets Index Fund ( EEM , quote ) and Vanguard FTSE Emerging Markets ETF ( VWO , quote ) continued en mass in the week of 19-25th of June.
This is a big reversal for a country that has been most out of favor, other than China. Speaking of China ( FXI , quote ), China led the way out with -$402 million in absolute terms, as investors were frightened by the move in short end of the rates curve (Shibor) and the hawkish PBoC comments.
Russia ( RSX , quote ) remains on the outs losing $200 million despite still having more than $1 billion of inflows since the start of 2012.
Korea and Taiwan were the biggest losers however when you consider the total $ AUM outflow relative to their overall size in the weighted MSCI.