Investors Continue To Be Net Purchasers Of Bond Funds And ETFs In May

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Includes: EEM, FDN, GLD, IVV, SDY, SHY, SQQQ, SVXY, TLT, VEA
by: Tom Roseen
Summary

For the second month running mutual fund investors were net purchasers of fund assets, injecting $57.4 billion into the conventional funds business for May.

For the eighth consecutive month Thomson Reuters Lipper’s World Equity Funds macro-classification witnessed net inflows, attracting $6.8 billion for May.

For the second month in a row APs were net purchasers of ETFs, injecting $30.9 billion for May.

For the second month in a row USDE ETFs (+$24.3 billion for May) attracted the largest net draw of the five broad-based equity ETF macro-classifications.

For the first month in three money market funds witnessed net inflows, taking in $59.3 billion for May (their largest monthly net inflows since November 2017). For the third month running the fixed income funds macro-group witnessed net inflows, taking in $6.0 billion. However, for the first month in three stock & mixed-asset funds witnessed net outflows (-$7.9 billion). Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs—injecting $24.1 billion. And for the thirty-fifth consecutive month they were net purchasers of bond ETFs—injecting $6.8 billion for May.

Despite the ongoing geopolitical concerns, fund investors continued to embrace international issues. For the eighth consecutive month they were net purchasers of World Equity Funds, injecting $6.8 billion for May. International Multi-Cap Core Funds (+$5.2 billion) remained at the top of the World Equity Funds classifications. APs were net purchasers of three of the five equity-based ETF macro-classifications: U.S. Diversified Equity (USDE) ETFs (+$24.3 billion), Sector Equity ETFs (+$2.8 billion), and Alternatives ETFs (+$597 million), while being net redeemers of World Equity ETFs (-$3.6 billion) and Mixed-Asset ETFs (-$28 million). In this segment I highlight the May fund-flow results for both types of investment vehicles.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.