New York (HedgeCo.Net) – TrimTabs Investment Research reported today that strong investor interest in non-U.S. equities is broadening from Europe and Japan into emerging markets. Even ahead of the stimulus announced Sunday, exchange-traded funds focused on Chinese equities posted 22 consecutive days of inflows totaling $1.6 billion (7.8% of the funds’ assets).
“Heady gains in Chinese stocks are attracting loads of American money,” said David Santschi, Chief Executive Officer of TrimTabs. “ETFs focused on Chinese stocks shot up 14% in the past month.”
In a research note, TrimTabs explained that emerging markets equity funds in general have been drawing their first substantial buying this year. In the month ended Friday, April 17, emerging markets equity ETFs issued $2.3 billion (2.2% of assets), posting inflows on all but two trading days. During that span, they surged 8%.
TrimTabs also noted that inflows into global equity mutual funds and ETFs have totaled $88.3 billion ($1.2 billion daily) so far this year, putting them on track to surpass the previous four-month record of $86.0 billion ($1.1 billion daily) from December 2005 through March 2006. In April, global equity funds are up 3.5%.
“For now, central bank stimulus measures are propping up financial asset prices around the world,” said Santschi. “The long-term consequences of these policies may not be as pleasant.”
Editing by Alex Akesson
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