Great Graphic: ETF Flows: Into US and Japan, Out from Europe and Emerging Markets

This Great Graphic was in JP Morgan's latest research.  It is the cumulative into global ETFs, measure in billions of dollars.  

To be sure, it is not a comprehensive view of cross border equity flows.  And typically, when non-Americans invest outside their home country,  there is a clear and strong preference for fixed income products over equities.

  

Nevertheless, the chart is suggestive of recent developments.  Flows into the US and Japan equity ETFs, while there has been an outflow from emerging markets and Western Europe.  It is consistent with Japan's weekly MOF data and anecdotal reports in the media, as well as the under-performance of emerging market equities.

The under-performance of emerging market equities is also clearly illustrated by this chart posted on Sober Look.  Indeed, poorer showing for emerging markets this year is one of unexpected developments that have called into question some of the arguments about the consequences of quantitative easing in the high income countries and currency wars.