February 16, 2019

Lipper U.S. Weekly FundFlows Insight Report: Funds Experience Significant Net Inflows for the Second Consecutive Week

by Patrick Keon.

Lipper’s fund asset groups (including both mutual funds and ETFs) took in almost $26.0 billion in net new money for the fund-flows trading week ended Wednesday, February 13. All four asset groups recorded positive net flows for the week, paced by money market funds (+$18.7 billion). Taxable bond funds, municipal debt funds, and equity funds contributed $4.6 billion, $1.5 billion, and $1.3 billion, respectively, to the total net inflows. Funds have grown their coffers by almost $57 billion during the last two trading weeks, which is the largest two-week increase since +$60.5 billion for the fund-flows weeks ending November 22 and November 29 in 2017.

ETFs

ETFs took in net new money for the second consecutive week (+$4.6 billion). Taxable bond ETFs (+$3.3 billion) were the main contributor to the week’s net inflows, while equity ETFs chipped in almost $1.3 billion. Muni debt ETFs barely managed to make it on the plus side of the ledger, with a positive net flow of $1.0 million. At the peer group level for taxable bond ETFs, the U.S. Mortgage Funds (+$1.1 billion), High Yield Funds (+$449 million), and Ultra Short Obligation Funds (+$356 million) moved the needle. iShares MBS ETF (MBB, +$1.1 billion) accounted for the lion’s share of the net inflows for the U.S. Mortgage Funds peer group, while iShares iBoxx $ High Yield Corporate ETF (HYG, +$755 million) led the charge for the High Yield Funds classification. For equity ETFs, SPDR S&P 500 ETF (SPY, +$1.3 billion) had the largest individual net inflows by far.

Equity Mutual Funds

Equity mutual funds had net positive flows for the sixth consecutive week, but just barely, as their coffers grew by only $1.0 million as nondomestic equity funds had net inflows of $938 million, while domestic equity funds saw $937 million in net outflows. Nondomestic equity funds have experienced net inflows of $8.5 billion year-to-date, while domestic equity funds are up $11.5 billion. For this week’s activity, the largest net inflows for nondomestic equity belong to Emerging Market Funds (+$417 million), while the largest net outflows for domestic equity was attributable to Mid-Cap Value Funds (-$243 million).

Fixed Income Mutual Funds

Both the muni debt (+$1.5 billion) and taxable bond (+$1.3 billion) mutual fund groups experienced net positive flows for the week. It was the sixth straight week of positive net flows for the muni debt group and the fifth straight for taxable bond funds. Taxable bond funds are up $21.3 billion year-to-date, while muni debt funds have grown by $10.4 billion. The most significant increases for muni debt funds belonged to General Muni Debt Funds (+$447 million), High Yield Muni Debt Funds (+$429 million), and Intermediate Muni Debt Funds (+$360 million). For taxable bond funds, the largest net inflows belonged to Short-Investment Grade Debt Funds (+$542 million) and Ultra-Short Obligation Funds (+$421 million).

Money Market Mutual Funds

Money market funds had positive net flows (+$18.7 billion) for the second consecutive week. The largest net inflows among the money market fund peer groups belonged to Institutional U.S. Government Funds Money Market Funds (+$13.8 billion), Institutional Money Market Funds (+$5.5 billion), and Money Market Instrument Funds (+$3.6 billion).

 

 

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