Danish and Turkish ETFs Post Strong Gains as Investors Shift Capital from Europe to Asia

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The Region & Country ETF landscape, comprising 183 funds from 35 issuers with a collective $221 billion in assets under management, experienced a dynamic week. European-focused funds, particularly those tracking Denmark and Turkey, delivered standout returns. However, this strong performance was met with significant investor skepticism, as the Eurozone region saw the week’s largest capital withdrawals. In contrast, investors allocated fresh capital to the Asia-Pacific region, with China-focused and South Korea-focused funds attracting the most significant inflows, signaling a clear rotational trend across global markets.

Weekly Performance Recap: Broad Gains Across Global Markets

All four major global regions posted positive returns for the week, with Asia-Pacific leading the way. Performance at the country level varied significantly, with Danish ETFs surging over 4% while Taiwanese equities retreated by more than 3%. This divergence highlights a market increasingly focused on country-specific catalysts over broad regional trends.

Regional Performance

  • Asia-Pacific: +1.34% (WTD), +4.64% (1M), +19.27% (YTD)
  • Eurozone: +1.29% (WTD), +2.98% (1M), +30.38% (YTD)
  • Americas: +1.18% (WTD), +5.29% (1M), +29.40% (YTD)
  • Africa-Middle East: +0.95% (WTD), +0.62% (1M), +18.33% (YTD)

Top 5 Performing Countries (Week-to-Date)

  • Denmark: +4.29%
  • Turkey: +4.07%
  • China: +3.68%
  • Norway: +3.09%
  • Mexico: +2.11%

Bottom 5 Performing Countries (Week-to-Date)

  • Taiwan: -3.40%
  • Argentina: -2.28%
  • Qatar: -2.25%
  • Poland: -2.20%
  • South Korea: -1.99%

Regional ETF Performance Leaders & Laggards

Asia-Pacific:

  • Top ETF: KSTR (KraneShares SSE STAR Market 50 Index ETF): +12.69%
  • Bottom ETF: FLTW (Franklin FTSE Taiwan ETF): -4.25%

Eurozone:

  • Top ETF: EDEN (iShares MSCI Denmark ETF): +4.29%
  • Bottom ETF: EPOL (iShares MSCI Poland ETF): -2.20%

Americas:

  • Top ETF: EWW (iShares MSCI Mexico ETF): +2.26%
  • Bottom ETF: ARGT (Global X MSCI Argentina ETF): -2.28%

Africa-Middle East:

  • Top ETF: ITEQ (Amplify BlueStar Israel Technology ETF): +2.72%
  • Bottom ETF: QAT (iShares MSCI Qatar ETF): -2.25%

Weekly Flows Summary: Investors Favor Asia-Pacific Over Europe

Fund flow dynamics revealed a clear divergence in investor sentiment. Asia-Pacific was the sole region to attract net new assets, pulling in over $160 million, largely driven by strong interest in China and South Korea. In stark contrast, the Eurozone experienced outflows of nearly half a billion dollars, with funds tracking Germany and the broader STOXX 50 index seeing the largest redemptions. This indicates that while performance in Europe was positive, investors chose to take profits or reduce exposure.

Regional Fund Flows

  • Asia-Pacific: +$161M (WTD), -$684M (1M), -$53M (YTD)
  • Africa-Middle East: -$23M (WTD), -$72M (1M), +$230M (YTD)
  • Americas: -$37M (WTD), -$109M (1M), +$2,203M (YTD)
  • Eurozone: -$468M (WTD), -$938M (1M), +$10,683M (YTD)

Largest Individual ETF Flows (5-Day):

Inflows:

  1. MCHI (iShares MSCI China ETF): +$107M
  2. EWY (iShares MSCI South Korea ETF): +$87M
  3. KWEB (KraneShares CSI China Internet ETF): +$50M
  4. EIDO (iShares MSCI Indonesia ETF): +$34M
  5. HEZU (iShares Currency Hedged MSCI Eurozone ETF): +$33M

Outflows:

  1. FEZ (SPDR EURO STOXX 50 ETF): -$288M
  2. EWG (iShares MSCI Germany ETF): -$204M
  3. EWJ (iShares MSCI Japan ETF): -$59M
  4. EWW (iShares MSCI Mexico ETF): -$37M
  5. EPP (iShares MSCI Pacific ex-Japan ETF): -$31M

Issuer and Product Landscape

The issuer landscape remains concentrated, with the top three firms commanding over 79% of the market’s assets. iShares leads with 49.98% of the total AUM, followed by Vanguard at 15.77% and JPMorgan at 14.47%. This week, KraneShares captured the largest net inflows with +$29 million, while SPDR saw the largest outflows at -$297 million. Product development has been quiet, with only two new ETFs launching in the past three months from issuers OTG and Themes. There have been no fund closures in the same period.

For a detailed breakdown of all data, including individual fund performance and flows, please refer to the full ETF Action weekly region & country reports.

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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