“This week, EM Asia and EMEA regional funds reported outflows of $340 million and $30 million, respectively. Dedicated EM ETF funds reported inflows of $1.93 billion, while non-ETF/active funds reported outflows of $550 million in the current week. Dedicated EM non-ETF/active funds have reported outflows continuously since May 2015,” according to a Morgan Stanley note posted by Dimitra DeFotis of Barron’s. “At the country level in EM (aggregate equity flows from all funds, global + EM dedicated funds), Colombia, Chile and Brazil reported the largest inflows relative to assets under management this week. Korea was the only country this week to report outflows relative to its assets under management.”
Bolstered by a rebounding currency and commodities prices, EWZ is higher by almost 26% year-to-date. The move higher by Brazilian stocks has also been aided by the country’s corruption crackdown. Earlier this month, Brazilian shares jumped as many traders believed the country is moving past a political gridlock that could lead to changes in the government and potentially kick-start the stagnate economy, Bloomberg reported.
iShares Latin American 40 ETF
