Conventional mutual fund investors opted to sit on the sidelines in September, embracing fixed income and money market products, while authorized participants (APs - ETF investors) remained risk-seeking. Although mutual fund investors redeemed some $27.9 billion from stock and mixed-equity funds for the month, for the sixteenth consecutive month, APs were net purchasers, injecting $17.2 billion. Year to date through September 30, 2017, conventional equity mutual funds handed back some $119.4 billion net, while equity ETFs took in $226.4 billion.
On the fixed income side of the equation, the focus of fund investors and APs stayed in step, with conventional bond funds attracting $207.6 billion year to date and bond ETFs drawing in $101.3 billion for the same period. In this segment, I highlight the September fund-flow trends for both types of investment vehicles.
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