Investors Rush to Asia Funds Amid Trump-Kim Meeting: ETF Watch

Investors Rush to Asia Funds Amid Trump-Kim Meeting: ETF Watch

Bloomberg  | Jun 12, 2018 21:11

Investors Rush to Asia Funds Amid Trump-Kim Meeting: ETF Watch

(Bloomberg) -- At the surface, the much anticipated meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un seemed to be a big nothing for markets.

But behind the scenes, traders were scurrying to move money amid the geopolitical noise, sending flows to some Asia exchange-traded funds. Volumes for U.S.-listed ETFs on Monday were almost 20 percent below their daily average over the past 20 days, according to an analysis by Josh Lukeman of Credit Suisse (SIX:CSGN) Group AG.

The iShares MSCI All Country Asia ex-Japan ETF, or AAXJ, absorbed trades worth $195 million, the most for a single day since April and more than double the average daily turnover in the past year. Most of the fund’s investments are in China, but almost 17 percent of its exposure is in South Korea, with Samsung (LON:0593xq) Electronics (KS:005930) Co. its third-largest position.

Fixed-income ETFs saw action as well, as investors traded close to $30 million of the SPDR Bloomberg Barclays (LON:BARC) Emerging Markets Local Bond ETF, or EBND, on both Monday and Friday. That’s about five times the daily average volume for the fund in the past year. EBND’s largest holding is South Korean sovereign debt.

Silver Spoons

Funds tied to silver also saw an uptick in volume on Monday, as the price of the metal rose nearly 1 percent. The iShares Silver Trust (NYSE:SLV), or SLV, had more than 10 million shares trade, the most in about a month and close to double the 15-day moving average over the past year. Similarly, investors moved more than $7 million worth of the Global X Silver Miners ETF, or SIL, about twice its average daily turnover this year.

“Tensions in the G7 could be putting pressure on the dollar and that could have lent support to the silver market,” said Phil Streible, a senior market strategist at RJO Futures.

About 40 percent of the the mining companies held by SIL are in Canada, 15.6 percent in Mexico, 12.7 percent in Russia and 11.7 percent in South Korea.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+