In 2015, exchange traded products targeting emerging market equities lost $26bn while total ETPs globally set a record high of $351bn in capital inflows, the report said.
In addition, developed market equity flows (ex-US) more than doubled to $200.1bn, largely concentrated in Europe and Japan exposures, which all set new records driven by attractive relative valuations.
Global ETPs by Exposure
Source: Blackrock
The report noted that EM equity ETP growth has not yet recovered from the taper tantrum in 2013, when it was hit by $10.3bn in outflows.
However, there was a caveat. “Excluding heavy outflows for the two largest funds, broad EM equity ETPs gathered $7.2bn, driven by low-cost core and minimum volatility strategies.
“Country fund outflows of $24bn were focused in a handful of locally-listed China A-shares funds, while China H-shares, India and Taiwan combined for inflows of $10.8bn.”
