Asia-Pacific ETFs Drive Over $1.1 Billion in Weekly Outflows from Region & Country Funds

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Weekly Channel Summary

The Region & Country ETF channel, comprising 191 funds from 37 issuers, holds a total of $287.02 billion in assets under management. This week, investors pulled a net $1.15 billion from the space, reducing the year-to-date inflow total to $17.21 billion. Over the past twelve months, the channel has still managed to attract a substantial $27.37 billion in net new assets.

This Week’s Performance Leaders and Laggards

Eurozone-focused ETFs led performance this week, posting a collective gain of 2.51% and bringing their year-to-date return to 9.24%. Conversely, Asia-Pacific funds were the primary laggards, dropping 1.07% over the past five trading days. Despite the weekly decline, the Asia-Pacific category remains the top performer on a year-to-date basis with an impressive 25.09% return. Latin America also struggled, declining by 0.42% for the week.

Region Performance Snapshot

Region WTD 1 Month 3 Month 6 Month YTD 1 Year
Eurozone 2.51% 1.90% 9.27% 7.97% 9.24% 19.46%
Africa-Middle East 1.27% -4.21% 1.50% 3.27% 4.34% 17.55%
North America -0.05% -2.10% 5.28% 7.36% 7.85% 25.93%
Latin America -0.42% -2.90% -5.82% 8.29% 9.39% 27.11%
Asia-Pacific -1.07% -4.44% 16.55% 22.20% 25.09% 47.83%

Top & Bottom 5 ETFs by Weekly Performance

A significant performance divergence was visible among South Korea-focused funds this week. The PLUS Korea Defense Industry Index ETF (KDEF) surged by 9.76%, making it the top-performing fund in the channel. In stark contrast, the iShares MSCI South Korea ETF (EWY) was the worst performer, plummeting 8.69%. China-focused funds also showed mixed results, with the Roundhill China Magnificent Seven ETF (MAGC) gaining 5.79% while the VanEck China Semiconductor ETF (SMHC) fell 6.45%.

Ticker Fund Name WTD Performance
Top Performers
KDEF PLUS Korea Defense Industry Index ETF 9.76%
KURE KraneShares MSCI All China Health Care Index ETF 8.79%
MAGC Roundhill China Magnificent Seven ETF 5.79%
IZRL ARK Israel Innovative Technology ETF 5.21%
EDEN iShares MSCI Denmark ETF 4.98%
Bottom Performers
EWY iShares MSCI South Korea ETF -8.69%
FLKR Franklin FTSE South Korea ETF -8.29%
SMHC VanEck China Semiconductor ETF -6.45%
MCHS Matthews China Innovators Active ETF -6.43%
MKOR Matthews Korea Active ETF -6.32%

Analyzing the Weekly Flows

The channel experienced net outflows of $1.15 billion, driven primarily by significant redemptions from Asia-Pacific focused funds, which shed $776 million. Latin America and North America also saw notable withdrawals, losing $299 million and $144 million, respectively. Bucking the trend, Eurozone ETFs were the only category to attract meaningful capital, pulling in a net $141 million for the week.

Region Flows Summary

Region Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Eurozone 55 $83.84B $141M $726M -$1,246M $305M $2,548M
Africa-Middle East 11 $3.06B -$72M -$129M -$213M $454M $737M
North America 3 $17.14B -$144M $476M $887M $2,216M $2,379M
Latin America 15 $18.04B -$299M -$1,421M -$33M $3,721M $4,920M
Asia-Pacific 106 $164.72B -$776M $641M $2,593M $10,518M $16,785M

Top & Bottom 5 ETFs by 5-Day Flow

Japan-focused funds captured the top spots for inflows, led by the JPMorgan BetaBuilders Japan ETF (BBJP) which collected $159 million. On the other side of the ledger, broad regional funds saw the largest redemptions. The iShares MSCI Emerging Markets Asia ETF (EEMA) led all outflows with a $333 million withdrawal, followed by the iShares MSCI Brazil ETF (EWZ), which shed $224 million. The struggling iShares MSCI South Korea ETF (EWY) also saw significant outflows of $214 million.

Ticker Fund Name 5-Day Flow
Inflows
BBJP JPMorgan BetaBuilders Japan ETF $159M
EWU iShares MSCI United Kingdom ETF $151M
DXJ WisdomTree Japan Hedged Equity Fund $61M
SMIN iShares MSCI India Small Cap ETF $49M
EIDO iShares MSCI Indonesia ETF $46M
Outflows
EEMA iShares MSCI Emerging Markets Asia ETF -$333M
EWZ iShares MSCI Brazil ETF -$224M
EWY iShares MSCI South Korea ETF -$214M
EWJ iShares MSCI Japan ETF -$195M
EWC iShares MSCI Canada ETF -$184M

Note: the following fund(s) were excluded from the flow totals above because the weekly flow exceeds 75% of the fund’s AUM and may be the result of a custom rebalance: SMHC ($214M).

Issuer League Table Update

iShares remains the dominant issuer in the Region & Country space, commanding a 53.41% market share, while JPMorgan holds the second position with 14.99%. This week, JPMorgan led all issuers in asset gathering, bringing in a net $200 million. In contrast, iShares experienced the largest outflows by a wide margin, with investors pulling nearly $1.22 billion from its suite of funds.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 64 $153.29B 53.41%
JPMorgan 5 $43.03B 14.99%
Vanguard 2 $38.06B 13.26%
Franklin 18 $14.08B 4.91%
WisdomTree 10 $12.70B 4.42%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
JPMorgan $200M
WisdomTree $46M
Rayliant $13M
Outflows
iShares -$1,219M
KraneShares -$94M
Xtrackers -$42M

For a deeper dive into these trends, access our FREE, in-depth Region & Country ETF reports in the right side panel of this page.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.