by Tom Roseen.
Investors were net redeemers of mutual fund assets for the third month in four, withdrawing $13.2 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below).
For the thirtieth consecutive month, stock & mixed-assets funds experienced net outflows (-$47.6 billion). The fixed income funds macro-group—for the second month in a row—witnessed net outflows, handing back $20.6 billion (its largest since last March). Attractive short-term yields and continued uncertainty helped the money market funds macro-group (+$54.9 billion) attract net new money for the fifth straight month.
For the seventeenth consecutive month, ETFs attracted net new money, taking in $38.3 billion for September.
Authorized participants (APs—those investors who create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs—also for the seventeenth month in a row—injecting $28.1 billion into equity ETF coffers. For the twentieth month running, they were net purchasers of bond ETFs—injecting $10.2 billion for the month. APs were net purchasers of three of the five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$32.5 billion), Alternatives ETFs (+$773 million), and World Equity ETFs (+$568 million), while being net sellers of Sector Equity ETFs (-$5.7 billion) and Mixed-Assets ETFs (-$63 million).
In this report, I highlight the September 2023 fund-flows results and trends for both ETFs and conventional mutual funds (including variable annuity underlying funds).
Click here to download the September 2023 FundFlows Insight Report: U.S. Fund Investors Favor ETFs Over Conventional Long-Term Funds in September.
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