EEM Drops To 10th Biggest ETF In June

July 08, 2015

The iShares MSCI Emerging Markets ETF (EEM | B-97) in June dropped two places to end the first half of 2015 as the 10th biggest ETF in the world. A nearly 4 percent drop in price, led by the ongoing Chinese selloff, plus outflows of more than $1.7 billion were to blame.

Emerging markets have been on the defensive since the U.S. economic recovery began showing staying power, which drove capital flows into the U.S. Those flows accelerated in May 2013 after the Federal Reserve first indicated it would soon begin to bring to a close its extraordinary bond buying designed to keep borrowing costs low and to encourage risk-taking in the stock market.

Throughout the post-crash years, the question of how China will reinvent itself has remained an open one. Its strong equity markets in the past year—particularly on the mainland—look by now like a bubble to some analysts. With China’s sell-off continuing, it looks likely that EEM could drop out of the top 10 when we next take of a snapshot of the ETF industry’s biggest funds. About 23 percent of EEM’s portfolio is in Chinese stocks.

The chart below plots EEM’s price and the price of the ETF market’s biggest China fund, the iShares China Large-Cap ETF (FXI | B-38). The fund focuses on large Hong Kong-listed firms, half of them financials, with nearly all of them run in some way by the Chinese government. FXI is in red and EEM is in black. The other two, in green and blue, trace positive returns last month in Brazil and India, respectively.

The 10 biggest ETFs below made up just over one-quarter of the $2.118 trillion in total U.S.-listed ETF assets at the end of the first half, according to data compiled by ETF.com. EEM ended the month of June with assets of about $29 billion compared with almost $32 billion at the end of May.

Chart courtesy of StockCharts.com

Biggest ETFs As Of July 1, 2015 ($M)

Ticker Fund Issuer June 2015
Flows
June 2015
AUM
June 2015
Turnover
SPY SPDR S&P 500 SSgA -2,157.63 170,512.09 532,248.23
IVV iShares Core S&P 500 BlackRock -966.55 67,763.66 15,408.52
EFA iShares MSCI EAFE BlackRock 2,167.95 60,941.33 27,488.83
VTI Vanguard Total Stock Market Vanguard 333.62 56,151.79 5,923.72
VWO Vanguard FTSE Emerging Markets Vanguard 567.38 47,663.93 10,899.13
QQQ PowerShares QQQ Invesco PowerShares 843.38 38,792.24 63,025.73
VOO Vanguard S&P 500 Vanguard 489.84 32,281.71 6,258.19
IWM iShares Russell 2000 BlackRock 2,722.45 29,527.21 84,423.50
IWF iShares Russell 1000 Growth BlackRock 29.72 29,438.65 2,628.51
EEM iShares MSCI Emerging Markets BlackRock -1,734.12 29,120.14 41,269.90

Biggest ETFs As Of June 1, 2015 ($M)

Ticker Fund Issuer May 2015
Flows
May 2015
AUM
May 2015
Turnover
SPY SPDR S&P 500 SSgA 792.74 176,955.64 411,708.26
IVV iShares Core S&P 500 BlackRock 74.15 70,457.01 13,212.69
EFA iShares MSCI EAFE BlackRock 1,501.84 61,593.47 23,917.90
VTI Vanguard Total Stock Market Vanguard 356.94 57,034.52 4,925.62
VWO Vanguard FTSE Emerging Markets Vanguard 262.54 48,698.94 8,728.98
QQQ PowerShares QQQ Invesco PowerShares -1,370.73 39,007.95 57,952.22
VOO Vanguard S&P 500 Vanguard 767.44 32,570.19 5,151.37
EEM iShares MSCI Emerging Markets BlackRock -18.72 31,904.15 36,476.31
IWF iShares Russell 1000 Growth BlackRock 559.26 29,940.57 3,095.83
VEA Vanguard FTSE Developed Markets Vanguard 671.38 28,106.44 3,041.06





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