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By Tim Seymour

Emerging markets funds continue a strong four-week trend after last week’s inflow of $2.55 billion and this week’s $920 million. Additional good news is the unloved out of favor Asian region continues to quietly receive the love.The Hong Kong and Hang Seng indexes are now in “Bull Market” territory after a 20% move off the September 5th bottoms.

The bad news from all of this is that most of these flows are in ETFs and non-dedicated products. On a four-week basis, ETFs have averaged $950-plus million vs. $50 million for non-ETFs, while Latin America and Eastern Europe have seen outflows during the same period.

It’s clear that people are making a macro call on emerging markets, but it is mostly a call on Asia not falling off the map, which is a view I have expressed here at Emerging Money for six weeks now.

Narrowing the focus to a country level, major positioning remains focused on the Philippines, China iShares FTSE China 25 Index Fund (FXI), Thailand iShares MSCI Thailand Index Fund (THD) in Asia, while Colombia, South Africa and Turkey are most crowded in other places.

Source: Fund Flows Mixed Picture Despite Positive Net Interest