ETF Asset Flow of May: Foreign Wins, U.S. Loses – May 31, 2017

The month of May turned out to be eventful includingallegations against the U.S. President Trump related to his Russia links, political turmoil in Brazil, a global cyber-attack, extension of the OPEC output cut deal and France election (read: Best ETF Strategies for Trump Uncertainty).

All these events left their mark in the monthly ETF asset accumulation and redemption process. Let’s take a look at the corners that were the hot favorites of investors in May and those that were cast out. The data is as per till May 25, 2017.


EAFE – iShares MSCI EAFE ETF (EFA Free Report)

As the Trump rally lost stream in the U.S. on political heating and the President’s alleged connections with Russia, investors turned their focus toward Europe, Australasia and the Far East. Notably, economic developments in this region is brightening gradually and investors did not miss any chance to cash in on it. Plus, several developed markets including the Euro zone and Japan are still enjoying the ultra-easy monetary policy and are thus poised to benefit.

EFA hauled in about $3.38 billion in the month while another EAFE-oriented fund iShares Core MSCI EAFE ETF (IEFA Free Report) attracted about $1.77 billion. Vanguard FTSE Developed Markets ETF (VEA Free Report) too grossed about $1.56 billion in assets in the said timeframe.

Corp. Bond –iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD Free Report)

As the broader equity market offered subdued returns in the month, investors poured about $1.99 billion in assets in the higher-yielding (than Treasuries) investment grade corporate bonds. Upbeat corporate earnings must have made investors confident about these bonds which offered great current income too.

Emerging Market – iShares Core MSCI Emerging Markets ETF (IEMG Free Report)

Emerging market stocks are on a tear lately. Improving economic growth, a certain level of stabilization in China, high-flying Indian stocks, series…

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