May 18, 2021

Investors Inject $83.6 Billion into Bond Funds/ETFs in April

by Tom Roseen.

Investors were net purchasers of mutual fund assets for the fifth month in a row, injecting $52.8 billion into the conventional funds business (excluding ETFs, which are reviewed in the section below) for April. For the third month in four, stock & mixed-assets funds experienced net outflows (-$31.1 billion) for April. With Federal Reserve officials doubling down on their belief that the near-term rise in inflation will be transitory and a flattening Treasury yield curve, investors continued to pad the coffers of fixed income instruments, pushing the fixed income funds macro-group to its twelfth consecutive month of net inflows, attracting $55.3 billion for April. Money market funds (+$28.7 billion) witnessed net inflows for the third consecutive month.

For the twentieth straight month, ETFs witnessed net inflows, taking in $81.1 billion for April. Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the eleventh consecutive month, injecting $52.8 billion into equity ETF coffers. And for the thirteenth month in a row, they were net purchasers of bond ETFs—injecting $28.3 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 (+$27.5 billion), World Equity ETFs (+$12.0 billion), Sector Equity ETFs (+$11.8 billion), Mixed-Assets ETFs (+$815 million), and Alternatives ETFs (+$728 million). Over the last four months, Stock & Mixed-Assets ETFs took in $246.7 billion and Bond ETFs attracted $70.3 billion of net new money.

In this report, I highlight the April 2021 fund-flows results and trends for both ETFs and conventional mutual funds.

Highlights:

  • For the fifth consecutive month, mutual fund investors were net purchasers of fund assets, injecting $52.8 billion into the conventional funds business for April.
  • Fixed income funds (+$55.3 billion for April) witnessed net inflows for the twelfth month in a row, while money market funds (+$28.7 billion) experienced net inflows for the third straight month.
  • For the third month four, investors were net sellers of stock & mixed-assets funds (-$31.1 billion).
  • APs were net purchasers of ETFs, injecting $81.1 billion for April, for their twentieth month of consecutive inflows.
  • And, for the thirteenth month in a row, fixed income ETFs (+$28.3 billion for April) attracted net new money, while investors padded the coffers of stock & mixed-assets ETFs (+$52.8 billion), their eleventh straight month of net inflows

Click here to download the April 2021 FundFlows Insight Report: Investors Inject $83.6 Billion into Bond Funds/ETFs in April.

Refinitiv Lipper delivers data on more than 330,000 collective investments in 113 countries. Find out more.

Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.

Get In Touch

Subscribe

Related Reports

Despite the 10-year Treasury yield rising seven basis points (bps) from 1.50% to 1.57% ...

Investors were overall net redeemers of fund assets (including those of conventional ...

Investors were net purchasers of mutual fund assets for the sixth month in a row, ...

For the month of May, investors injected some $167.5 billion into the mutual fund ...

We have updated our Privacy Statement. Before you continue, please read our new Privacy Statement and familiarize yourself with the terms.×