As the risk-off environment extends, investors are pulling out of riskier assets like emerging market exchange traded funds. However, one Latin American market is bucking the trend.
Investors yanked over $1 billion out of U.S.-listed emerging market exchange traded funds over the past week, reports Kenneth Kohn for Bloomberg.
Emerging-market-related ETFs saw $1.16 billion in redemptions last week and saw $5.29 billion in outflows so far this year. For instance, the broad Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) saw $514.1 million in outflows last week and experienced $1.0 billion in redemptions year-to-date.
The largest overflows came out of China and Hong Kong where funds shrunk by $392.3 million. Investors pulled $158.7 million from the iShares MSCI Hong Kong ETF (NYSEArca: EWH) over the past week.
However, Chilean markets have been a bastion of strength in an otherwise weak global market, with the iShares MSCI Chile Capped ETF (NYSEArca: ECH) attracting $29.2 million over the past week. ECH has gained 2.5% over the past month.