Emerging Markets Funds Stay Red-Hot, Reeling In Billions In Inflows

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at the continued flight into emerging market ETFs, more interest in high-yield junk bonds, and perhaps surprising outflows from large cap equities.

“EAFE” (ex-U.S.) funds continue to see bids this week, in a continuation of what we saw last week in the space related to end-of-the-quarter trading. EFA (iShares MSCI EAFE), IEFA (iShares Core MSCI EAFE), and VEA (Vanguard FTSE Developed Markets) have all continued to see inflows this week.

Meanwhile, in the High Yield Corporate Bond space, both HYG (iShares High Yield Corporate Bond) and JNK (SPDR High Yield Bond) have reeled in new assets as well.

Emerging Markets continue to see asset flows, with VWO (Vanguard FTSE Emerging Markets) pulling in over $1 billion in the past couple sessions, and even Emerging Markets Bonds joining the fray, with EMB (iShares Emerging Markets Bond) packing in more than $300 million via creation flows.

Elsewhere, a staggering $7 billion has been liquidated in SPY this week, with a large chunk of this occurring before the release of FOMC minutes this past Wednesday.

The Vanguard Emerging Markets Stock Index Fund (NYSE:VWO) was trading at $40.05 per share on Friday morning, up $0.07 (+0.18%). Year-to-date, VWO has gained 11.93%, versus a 5.20% rise in the benchmark S&P 500 index during the same period.

VWO currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 77 ETFs in the Emerging Markets Equities ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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