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The "Great Rotation" is getting legs as $11.3B has gone into global stock mutual funds in the...

The "Great Rotation" is getting legs as $11.3B has gone into global stock mutual funds in the last 2 weeks - the largest 2-week inflow since April 2000 (how'd that one work out?). The theory - open for discussion - is mutual fund flows reflect "Mom and Pop" activity, while ETF flows - money left in the last week - are more dominated by the institutional and trading set.
Comments (6)
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
     
    From Zerohedge:

     

    "So Much For That "Record Inflow" Into Equity Funds - Domestic Equities See $4.2 Billion Outflow In Most Recent Week"
    18 Jan 2013, 08:27 AM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    According to ICI only 6% of mutual fund investors have ETFs...I suspect this number will dramatically change as Mom and Pop see so
    many advantages of ETFs over mutual funds...

     

    http://bit.ly/Wdi06x
    18 Jan 2013, 08:35 AM Reply Like
  • Tack
    , contributor
    Comments (12761) | Send Message
     
    bbro:

     

    I suspect any changes here will be rather glacial. Mom and Pop don't "see" advantages (or much else); that's why they're in mutual funds to begin with. Many are held in 401K's, IRA's and other personal accounts that don't have brokerages involved (i.e., funds were/are invested directly) nor get any active oversight or management.
    18 Jan 2013, 09:41 AM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    Agreed..my use of the word dramatic was incorrect...the percentage increase
    will be considerable say from 6% to 10% or maybe 15% but the actual percentage will still be quite small.
    18 Jan 2013, 11:06 AM Reply Like
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    Maybe the latest increase in fees by ETF with accompanying decrease in fees for mutual funds is finding a balance?
    Or as people learn about ETFs, they learn that most of these funds can be shorted and have derivative products. Not necessarily bad, but people may feel that their money should not be placed into a churning froth of activity and told that things are safe.
    18 Jan 2013, 11:34 AM Reply Like
  • ssl23
    , contributor
    Comments (120) | Send Message
     
    this is just the money people took out because the media over hyped the fiscal cliff doom....

     

    but global indicators look good for equities based on currency devaluation throughout the world....QE will spread like the flu...
    18 Jan 2013, 12:06 PM Reply Like
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