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Inflows to emerging-market ETFs dip amid delta variant spread: Report

Debt funds saw gains of $175.7 million last week, while the ones that invest in stocks recorded an inflow of only $14.6 million.

August 11, 2021 / 02:23 PM IST
Many countries are keeping a close watch on the Delta variant of SARS-CoV2, which is more transmissible than the original coronavirus.

Many countries are keeping a close watch on the Delta variant of SARS-CoV2, which is more transmissible than the original coronavirus.

Emerging-market exchange-traded funds (ETFs) recorded weaker inflows, amid a surge in the spread of the Delta coronavirus variant and the likelihood of faster monetary policy tightening.

Investors added $190.3 million to US-listed emerging-market ETFs during the week ended August 6, compared with the inflow of $400.2 million in the previous week, Bloomberg reported.

This is the smallest addition since the funds lost money four weeks ago. Debt funds saw gains of $175.7 million last week, while the ones that invest in stocks added only $14.6 million, the report said.

Also read: 'Fed will be forced to hike rates before 2023 if inflation stays in uncomfortable range, resulting FII outflow from EMs'

The $5.1 billion KraneShares CSI China Internet ETF, or KWEB, recorded an addition of $211.9 million, according to data compiled by Bloomberg.

Close

Investors pulled out the most amount of money from Brazil, particularly the $1.6 billion iShares Latin America 40 ETF, known as ILF. The fund saw an outflow of $104.9 million, its biggest loss since November 2019.

Many countries are keeping a close watch on the Delta variant of SARS-CoV2, which is more transmissible than the original coronavirus.

Reuters separately reported that two Federal Reserve officials are of the view that while the labour market still has room for improvement, inflation is already at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.
Moneycontrol News
first published: Aug 11, 2021 02:23 pm

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