Investors were net sellers of mutual fund assets for the second month in three, withdrawing $38.1 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below).
For the twenty-seventh consecutive month, stock & mixed-assets funds experienced net outflows (-$63.2 billion). However, despite a more hawkish tone set by Federal Reserve Board officials after an interest rate hike skip at its June Federal Open Market Committee (FOMC) meeting, the fixed income funds macro-group—for the second month in a row—witnessed net inflows, taking in $13.6 billion. With investors’ attraction to rising yields, the money market funds macro-group (+$11.5 billion) witnessed its second straight monthly net inflow.
For the fourteenth consecutive month, ETFs attracted net new money, taking in $71.9 billion for June—their largest net inflows since November 2022. Authorized participants (APs—those investors who create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs—also for the fourteenth month in a row—injecting $55.9 billion into equity ETF coffers. For the seventeenth month running, they were net purchasers of bond ETFs—injecting $16.0 billion for the month. APs were net purchasers of four of the five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$46.0 billion), World Equity ETFs (+$11.5 billion), Alternatives ETFs (+$1.2 billion), and Mixed-Assets ETFs (+$719 million) while being net sellers of Sector Equity ETFs (-$3.6 billion).
In this report, I highlight the June 2023 fund-flows results and trends for both ETFs and conventional mutual funds (including variable annuity underlying funds).
Highlights:
- For the second month in three, mutual fund investors were net sellers of fund assets, withdrawing $38.1 billion from conventional funds for June.
- Fixed income funds (+$13.6 billion for June) and money market funds (+$11.5 billion) witnessed net inflows for the second straight month.
- Investors were net sellers of stock & mixed-assets funds (-$63.2 billion) for the twenty-seventh straight month.
- Authorized Participants (APs) were net purchasers of ETFs, injecting $71.9 billion for June.
- Fixed income ETFs (+$16.0 billion for June) witnessed net inflows for the seventeenth straight month, while investors were net purchasers of stock & mixed-assets ETFs (+$55.9 billion).
- U.S. Diversified Equity ETFs (+$46.0 billion) attracted the largest monthly net inflows of Lipper’s five equity-based ETF macro-groups.
Click here to download the June 2023 FundFlows Insight Report: Equity ETFs Attract Largest Monthly Net Inflows in Eight for June.
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