Investors were net redeemers of mutual fund assets for the second month in row, withdrawing $15.0 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below) for July. For the fourth month in a row, stock & mixed-assets funds experienced net outflows (-$11.8 billion). The Treasury yield curve continued to flatten during the month, pushing the fixed income funds macro-group to its fifteenth consecutive month of net inflows, attracting $20.5 billion for July. Money market funds (-$23.8 billion) witnessed net outflows for the second consecutive month. Over the last seven months, stock & mixed-assets funds handed back $167.5 billion, while bond and money market funds attracted $344.6 billion and $173.7 billion, respectively, of net new money.
For the twenty-third straight month, ETFs witnessed net inflows, taking in $54.1 billion for July. Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the fourteenth consecutive month, injecting $36.3 billion into equity ETF coffers. And for the sixteenth month in a row, they were net purchasers of bond ETFs—injecting $17.8 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 (+$21.1 billion), World Equity ETFs (+$13.3 billion), Alternatives ETFs (+$807 million), Mixed-Assets ETFs (+$757 million), and Sector Equity ETFs (+$323 million). Over the last seven months, stock & mixed-assets ETFs took in $385.1 billion and bond ETFs attracted $125.6 billion of net new money.
In this report, I highlight the July 2021 fund-flows results and trends for both ETFs and conventional mutual funds.
Highlights:
- For the second month running, mutual fund investors were net sellers of fund assets, redeeming $15.0 billion from conventional funds for July.
- Fixed income funds (+$20.5 billion for July) witnessed net inflows for the fifteenth month in a row, while money market funds (-$23.8 billion) experienced net outflows for the second month in a row.
- For the fourth straight month, investors were net sellers of stock & mixed-assets funds (-$11.8 billion).
- APs were net purchasers of ETFs, injecting $54.1 billion for July, for their twenty-third month of consecutive inflows.
- And, for the sixteenth month in a row, fixed income ETFs (+$17.8 billion for July) attracted net new money, while investors padded the coffers of stock & mixed-assets ETFs (+$36.3 billion), their fourteenth straight month of net inflows.
Click here to download the July 2021 FundFlows Insight Report: Investors Embrace Inflation Protected Bond Funds and ETFs in July.
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.
