December 15, 2020

Vaccine-Inspired Rally Pushes ETFs to Record Net Inflows for November

by Tom Roseen.

Investors were net sellers of mutual fund assets for the sixth month in a row, withdrawing $9.8 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below) for November. For the twenty-second month in a row, stock & mixed-assets funds witnessed net outflows (-$38.5 billion) in November (the group’s smallest net redemptions since April 30, 2020). In contrast, investors continued to inject net new money into fixed income instruments, pushing the fixed income funds macro-group to its seventh consecutive month of net inflows, attracting $38.7 billion for November. However, money market funds (-$10.0 billion) witnessed net outflows for the sixth month running.

For the fifteenth month running, ETFs witnessed net inflows, taking in $90.8 billion for November (a monthly record amount). Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the sixth consecutive month, adding a whopping $76.2 billion into equity ETF coffers (the largest on record). And for the eighth month in a row, they were net purchasers of bond ETFs—injecting $14.6 billion for the month. APs were net purchasers of all five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$48.3 billion), Sector Equity ETFs (+$15.6 billion), World Equity ETFs (+$11.7 billion), Mixed-Assets ETFs (+$537 million), and Alternatives ETFs (+$173 million).

In this report, I highlight the November and year-to-date fund-flows results for both types of investment vehicles.

Highlights:

  • For the sixth month in a row, mutual fund investors were net sellers of fund assets, withdrawing $9.8 billion from the conventional funds business for November.
  • Fixed income funds (+$38.7 billion for November) witnessed net inflows for the seventh month in a row, while money market funds (-$10.0 billion) suffered net outflows.
  • For the twenty-second consecutive month, investors were net redeemers of stock & mixed-assets funds (-$38.5 billion).
  • Authorized participants (APs) were net purchasers of ETFs, injecting a record $90.8 billion for November, for the fifteenth month of consecutive inflows.
  • And, for the eighth month running, APs were net purchasers of fixed income ETFs (+$14.6 billion), while pumping money into stock & mixed-assets ETFs (+$76.2 billion) for the sixth month running.

Click here to download the November 2020 FundFlows Insight Report: Vaccine-Inspired Rally Pushes ETFs to Record Net Inflows for November.

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