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
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.”