For the second month in three stock & mixed-asset funds witnessed net inflows, taking in $4.2 billion for the month, while for the fourteenth month in 15, the fixed income funds macro-group attracted new money—some $12.5 billion for March. However, for the second month in three money market funds witnessed net outflows, handing back $47.2 billion. Authorized participants (APs, those investors who actually create and redeem ETF shares) were net redeemers of stock & mixed-asset ETFs—withdrawing $7.8 billion. Nevertheless, for the sixteenth consecutive month they were net purchasers of bond ETFs—injecting $3.2 billion for March.
Despite Thomson Reuters Lipper’s World Equity Funds macro-classification continuing to slide in March, declining 0.85% on average for the month, fund investors continued to embrace international issues. For the sixth consecutive month investors were net purchasers of World Equity Funds, injecting $10.9 billion for March. APs were net redeemers of two of the five equity-based ETF macro-classifications: U.S. Diversified Equity ETFs (-$14.5 billion) and Alternatives ETFs (-$13 million), while being net purchasers of Sector Equity ETFs (+$5.1 billion), World Equity ETFs (+$1.5 billion), and Mixed-Asset ETFs (+$149 million). In this segment I highlight the March fund-flow results for both types of investment vehicles.
- For the first month in nine mutual fund investors were net sellers of fund assets, withdrawing $30.4 billion from the conventional funds business. However, only money market funds (-$47.2 billion) witnessed net outflows for March, while investors were net purchasers of stock & mixed-asset funds (+$4.2 billion) and fixed income funds (+$12.5 billion).
- For the sixth consecutive month Lipper’s World Equity Funds macro-classification witnessed net inflows, attracting $10.9 billion for March.
- For the second consecutive month APs were net redeemers of ETFs, withdrawing $4.6 billion for March. APs redeemed a net $7.8 billion from stock & mixed-asset ETFs but were net purchasers of bond ETFs, injecting a net $3.2 billion.
- For the first month in six Sector Equity ETFs (+$5.1 billion for March) attracted the largest net draw of the five broad-based equity ETF macro-classifications.
Data from Reuters