China and Vietnam ETFs Surge as Investors Pull Capital from Broader Regions

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The Region & Country ETF landscape, encompassing 182 funds from 34 issuers with a total of $221 billion in assets under management, presented a bifurcated picture this week. While specific Asian markets, notably Vietnam and China, delivered standout returns, investors broadly reduced exposure to international equities. The Asia-Pacific and Eurozone regions experienced the most significant capital flight, even as a handful of China-focused funds attracted substantial new assets, highlighting a selective approach by investors in the current environment.

Weekly Performance Recap: Pockets of Strength in Asia Amid European Weakness

Global markets saw wide dispersion in performance, with country-specific stories driving returns. Vietnam was the clear leader, posting gains of nearly 5%, followed by strong showings from Brazil and Israel. Chinese equities also rallied, with several technology and innovation-focused ETFs posting high single-digit gains. In contrast, the Eurozone broadly declined, with Greece experiencing the sharpest pullback of over 4%, continuing a theme of weakness across most European single-country ETFs.

Regional Performance

  • Americas: +1.02% (WTD), +7.06% (1M), +30.78% (YTD)
  • Africa-Middle East: -0.34% (WTD), +1.98% (1M), +17.50% (YTD)
  • Asia-Pacific: -0.20% (WTD), +5.16% (1M), +19.09% (YTD)
  • Eurozone: -2.14% (WTD), +3.08% (1M), +27.54% (YTD)

Top 5 Performing Countries (Week-to-Date)

  • Vietnam: +4.78% (WTD), +12.48% (1M), +52.34% (YTD)
  • Brazil: +2.93% (WTD), +10.69% (1M), +35.57% (YTD)
  • Israel: +2.32% (WTD), +3.36% (1M), +17.75% (YTD)
  • China: +1.84% (WTD), +10.18% (1M), +29.42% (YTD)
  • Canada: +1.63% (WTD), +5.53% (1M), +21.54% (YTD)

Bottom 5 Performing Countries (Week-to-Date)

  • Greece: -4.10% (WTD), +3.77% (1M), +64.66% (YTD)
  • Austria: -3.43% (WTD), +4.33% (1M), +49.89% (YTD)
  • France: -3.38% (WTD), +1.87% (1M), +21.13% (YTD)
  • Poland: -3.01% (WTD), -0.23% (1M), +54.30% (YTD)
  • Indonesia: -2.90% (WTD), +2.97% (1M), +0.88% (YTD)

Regional ETF Performance Leaders & Laggards

  • Africa-Middle East:
    • Top ETF: EIS (iShares MSCI Israel ETF): +2.62%
    • Bottom ETF: EZA (iShares MSCI South Africa ETF): -2.19%
  • Americas:
    • Top ETF: EWZS (iShares MSCI Brazil Small-Cap ETF): +4.14%
    • Bottom ETF: ARGT (Global X MSCI Argentina ETF): -2.56%
  • Asia-Pacific:
    • Top ETF: KSTR (KraneShares SSE STAR Market 50 Index ETF): +8.15%
    • Bottom ETF: EIDO (iShares MSCI Indonesia ETF): -4.19%
  • Eurozone:
    • Top ETF: EWL (iShares MSCI Switzerland ETF): -0.46%
    • Bottom ETF: GREK (Global X MSCI Greece ETF): -4.10%

Weekly Flows Summary (As of 8/28/2025): Investors Favor China ETFs Amid Broad Outflows

Fund flow activity revealed a risk-off sentiment across broad international markets, with over $324 million exiting the Region & Country category. The Africa-Middle East was the sole region to attract net new assets, albeit a modest $18 million. The Asia-Pacific region saw the heaviest redemptions, losing $176 million, closely followed by the Eurozone with $148 million in outflows. Despite the negative trend in Asia, the data shows a clear preference for China-focused strategies, as funds like ASHR and KWEB were among the top five asset gatherers globally for the week.

Regional Fund Flows

  • Africa-Middle East: +$18M (WTD), -$58M (1M), +$247M (YTD)
  • Americas: -$19M (WTD), -$100M (1M), +$2,184M (YTD)
  • Eurozone: -$148M (WTD), -$1,060M (1M), +$10,536M (YTD)
  • Asia-Pacific: -$176M (WTD), -$1,318M (1M), -$230M (YTD)

Largest Individual ETF Flows (5-Day):

  • Inflows:
    1. ASHR (Xtrackers Harvest CSI 300 China A-Shares ETF): +$194M
    2. KWEB (KraneShares CSI China Internet ETF): +$80M
    3. MCHI (iShares MSCI China ETF): +$73M
    4. AIA (iShares Asia 50 ETF): +$55M
    5. EIDO (iShares MSCI Indonesia ETF): +$55M
  • Outflows:
    1. EWJ (iShares MSCI Japan ETF): -$264M
    2. EWY (iShares MSCI South Korea ETF): -$200M
    3. INDA (iShares MSCI India ETF): -$155M
    4. EWI (iShares MSCI Italy ETF): -$54M
    5. EWU (iShares MSCI United Kingdom ETF): -$50M

Issuer and Product Landscape

The issuer landscape remains concentrated, with the top three firms commanding over 79% of the market. iShares leads with 49.85% of AUM, followed by Vanguard at 15.74% and JPMorgan at 14.60%. For the week, Xtrackers saw the largest net inflows of $194 million, primarily driven by its China A-Shares ETF. Conversely, iShares experienced the largest net outflows, shedding $652 million across its extensive product suite. Product development has been quiet, with two new ETFs launching in the past three months from issuers Themes and OTG, while First Trust and Range each closed one fund during the same period.

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.

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