Investors were net purchasers of mutual fund assets for the second month in three, injecting $24.4 billion into the conventional fund business (excluding ETFs, which are reviewed in the section below). However, the headline numbers are a bit misleading.
Stock & mixed-assets funds experienced net outflows (-$56.8 billion) for the thirty-fourth consecutive month. However, the fixed income funds macro-group—for the first month in six—witnessed net inflows, taking in $26.7 billion. And, in a continued flight to safety, investors padded the coffers of money market funds, injecting $54.5 billion for January.
For the twenty-first consecutive month, ETFs attracted net new money, taking in $65.9 billion for January.
Authorized participants (APs—those investors who create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs—also for the twenty-first month in a row—injecting $17.0 billion into equity ETF coffers. For the twenty-fourth month running, they were net purchasers of bond ETFs—injecting $49.0 billion for the month (their largest monthly net inflow on record). APs were net purchasers of three of the five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$12.4 billion), World Equity ETFs (+$7.0 billion), and Mixed-Assets ETFs (+$89 million) while being net redeemers of Sector Equity ETFs (-$1.5 billion) and Alternatives ETFs (-$931 million).
In this report, I highlight the Janaury 2024 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 purchasers of fund assets, injecting $24.4 billion into conventional funds for January.
- Money market funds (+$54.5 billion) witnessed net inflows for the third consecutive month.
- Fixed income funds (+$26.7 billion) experienced net inflows for the first month in six, while investors were net sellers of stock & mixed-assets funds (-$56.8 billion) for the thirty-fourth month in a row.
- APs were net purchasers of ETFs, injecting $65.9 billion for January.
- Fixed income ETFs (+$49.0 billion, a record amount) witnessed net inflows for the twenty-fourth straight month, while investors were net purchasers of stock & mixed-assets ETFs (+$17.0 billion).
- Grayscale Bitcoin Trust (GBTC, housed in Lipper’s Alternative Currency Strategies ETF classification) took in $20.7 billion for January.
Click here to download the January 2024 FundFlows Insight Report: Fixed Income ETFs Attract Record Net Inflows in January After the SEC Approves Bitcoin ETFs.
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