Money Flow From Emerging to Developed International? (ETFs: EEM, EFA)

According to AMG Data, for the week ending June 7, excluding ETFs, International equity funds still experienced a net inflow of $19 million -- despite an outflow of $268 million from emerging markets funds.

Domestic equity funds and ETFs reported outflows of $1.9 billion.

I think this suggests that instead of moving money out of international altogether, investors are moving money out of emerging markets and into international funds consisting of larger international companies in developed markets.

To this point, money hasn’t come out of emerging markets and gone back into U.S. funds, something I suspected might happen if emerging markets got scarier. It seems the fact that U.S. markets began dropping about the same time as emerging markets has kept investors from doing that.