Under The Radar ETFs With Big Inflows

August 02, 2017

Lesser-Known EM ETFs Gain Traction

Like tech, emerging markets has been a hot area of the markets this year, both in terms of performance and flows. The large ETFs in the emerging market space, such as the iShares Core MSCI Emerging Markets ETF (IEMG) and the Vanguard FTSE Emerging Markets ETF (VWO), have unsurprisingly been big flow winners, but so too have a number of smaller emerging market funds.

Those include the PowerShares S&P Emerging Markets Momentum Portfolio (EEMO), the iShares Emerging Markets High Yield Bond ETF (EMHY), the Emerging Markets Internet & Ecommerce ETF (EMQQ), the J.P. Morgan Diversified Return Emerging Markets Equity ETF (JPEM) and the KraneShares CSI China Internet ETF (KWEB).

All of these funds hold emerging market equities, except EMHY, which focuses on emerging market high-yield bonds. With a yield-to-maturity of more than 6%, it's clear why investors have been scooping up this ETF in today's low-yield world.

 

Ticker Fund AUM At
Start Of
Year ($M)
AUM
Currently
($M)
Inflows
($M)
EEMO PowerShares S&P Emerging Markets Momentum Portfolio 1 331 295
EMHY iShares Emerging Markets High Yield Bond ETF 95 494 391
EMQQ Emerging Markets Internet & Ecommerce ETF 26 221 165
JPEM J.P. Morgan Diversified Return Emerging Markets Equity ETF 60 160 80
KWEB KraneShares CSI China Internet ETF 203 690 330

 

Contrarian Commodity Signals

Another area offering high yield that's picked up assets quickly this year is Master Limited Partnerships (MLPs). The InfraCap MLP ETF (AMZA) and the Global X MLP & Energy Infrastructure ETF (MLPX) both hold MLPs, which are energy infrastructure companies that pay large distributions.

Assets under management (AUM) for both ETFs more than doubled this year. AMZA is actively-managed, with $471 million in assets, while MLPX tracks and index and has $303 million in assets.

Staying with the commodities theme, the Sprott Junior Gold Miners ETF (SGDJ) and the iShares MSCI Global Gold Miners ETF (RING) saw their AUM leap higher this year after a controversial index change in a rival gold miner ETF, the VanEck Vectors Junior Gold Miners ETF (GDXJ), sapped demand for that multibillion-dollar product.

Meanwhile, the Global X Uranium ETF (URA) is a seldom-mentioned commodity fund where AUM ballooned from $127 million at the start of the year to $287 million currently. Based on these flows, perhaps some investors are anticipating a resurgence in commodity prices. 

 

Ticker Fund AUM At
Start Of
Year ($M)
AUM
Currently
($M)
Inflows
($M)
AMZA InfraCap MLP ETF 173 471 353
MLPX Global X MLP & Energy Infrastructure ETF 138 303 172
SGDJ Sprott Junior Gold Miners ETF 46 160 106
RING iShares MSCI Global Gold Miners ETF 140 376 218
URA Global X Uranium ETF 127 287 170

 

 

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