For the first month in three money market funds witnessed net inflows, taking in $59.3 billion for May (their largest monthly net inflows since November 2017). For the third month running the fixed income funds macro-group witnessed net inflows, taking in $6.0 billion. However, for the first month in three stock & mixed-asset funds witnessed net outflows (-$7.9 billion). Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs—injecting $24.1 billion. And for the thirty-fifth consecutive month they were net purchasers of bond ETFs—injecting $6.8 billion for May.
Despite the ongoing geopolitical concerns, fund investors continued to embrace international issues. For the eighth consecutive month they were net purchasers of World Equity Funds, injecting $6.8 billion for May. International Multi-Cap Core Funds (+$5.2 billion) remained at the top of the World Equity Funds classifications. APs were net purchasers of three of the five equity-based ETF macro-classifications: U.S. Diversified Equity (USDE) ETFs (+$24.3 billion), Sector Equity ETFs (+$2.8 billion), and Alternatives ETFs (+$597 million), while being net redeemers of World Equity ETFs (-$3.6 billion) and Mixed-Asset ETFs (-$28 million). In this segment I highlight the May fund-flow results for both types of investment vehicles.
Highlights:
- For the second month running mutual fund investors were net purchasers of fund assets, injecting $57.4 billion into the conventional funds business for May. For the first month in three money market funds (+$59.3 billion) witnessed net inflows, while for the third month in a row investors were net purchasers of fixed income funds (+$6.0 billion). Stock & mixed-asset funds (-$7.9 billion) suffered net redemptions.
- For the eighth consecutive month Lipper’s World Equity Funds macro-classification witnessed net inflows, attracting $6.8 billion for May.
- For the second month in a row APs were net purchasers of ETFs, injecting $30.9 billion for May. APs padded the coffers of stock & mixed-asset ETFs and bond ETFs, injecting a net $24.1 billion and $6.8 billion, respectively.
- For the second month in a row USDE ETFs (+$24.3 billion for May) attracted the largest net draw of the five broad-based equity ETF macro-classifications.
Click here to download the May 2018 FundFlows Insight Report: Investors Continue to be Net Purchasers of Bond Funds and ETFs in May.
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