Mutual fund investors were net purchasers of fund assets (including conventional funds and exchange-traded funds [ETFs]), injecting a net $25.4 billion for the week ended Wednesday, September 11. This was despite continued worries over Syria and uncertainty surrounding finding a replacement for Fed Chairman Bernanke. The embattled municipal bond funds macro-group witnessed the only net redemptions, handing back some $1.9 billion, while money market funds had net inflows of $13.2 billion, equity funds took in some $12.8 billion, and taxable bond funds saw net inflows of $1.3 billion. This was all amidst news that both the Dow Jones Industrial Average and the S&P 500 had their longest stretch of plus-side performance since July.
UPBEAT WEEK FOR EQUITY ETFs & INTERNATIONAL FUNDS
For the first week in five, equity exchange-traded funds (ETFs) experienced net inflows, taking in $9.0 billion. ETF investors embraced better-than-expected economic reports and allocated the largest sum of net new money to SPDR S&P 500 (+$3.9 billion net). iShares Core S&P Mid-Cap Index ETF handed back the largest net outflows for the group at $400 million.
Mutual fund (ex-ETF) investors’ interest in equity mutual funds remained intact; injecting a net $3.7 billion for the week. Domestic equity funds attracted net inflows of a little less than $1.8 billion, while non-domestic equity funds took in $1.9 billion. With strong economic news from China, investors injected a net $1.7 billion into international funds.
Taxable bond funds (ex-ETFs) took in a scant $118 million net for the week. Investors once again shunned government Treasury & mortgage funds, government mortgage funds, and government Treasury funds. As fixed income investors continued to anticipate rising interest rates, however, the adjustable-rate loan participation funds group attracted $1.4 billion net for the week. On the heels of the Detroit bankruptcy, poor fiscal management of Puerto Rican debt caused municipal debt funds (ex-ETFs) to witness net outflows, handing back some $1.8 billion.
For more information on this week’s fund flows data, please refer to Lipper’s U.S. Fund Flows website or this video.
