By Shuli Ren
For the week ending October 16, capital totaling $1 billion flowed into emerging markets equity funds, data provided by Barclays show.
U.S. government shutdown snapped the nascent inflow back into the bonds. A total amount of $0.6 billion, or 0.2% asset under management (AUM), left emerging markets bond funds.
The outflow from bond funds was smaller than the inflow from equity funds, which is a net positive for EM currencies.
For the same period, the iShares MSCI Emerging Markets ETF (EEM) gained 3.2%. The iShares JP Morgan USD Emerging Markets Bond ETF (EMB) gained 1%. The iShares Emerging Markets Local Currency Bond ETF (LEMB) gained 0.7%.