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U.S. Weekly FundFlows Insight Report: Equity Funds Pace Net Inflows For The Week

Aug. 06, 2018 11:24 AM ETSPY, SDY, TIP, MUB
Pat Keon, CFA profile picture
Pat Keon, CFA


  • Equity funds took in $2.1 billion in net new money.
  • Taxable Bond funds had net outflows of $1.6 billion.
  • Municipal bond funds suffered net-negative flows of $368 million.
  • Money market funds experienced net inflows of $344 million.

Thomson Reuters Lipper’s fund asset groups (including both mutual funds and ETFs) had net inflows of $403 million for the fund-flows week ended Wednesday, August 1. Equity funds (+$2.1 billion) accounted for the lion’s share of the net-positive flows, while money market funds contributed $344 million to the total. Fixed income funds did not fare as well; both taxable bond funds (-$1.6 billion) and municipal bond funds (-$368 million) both saw net money leave their coffers.

Market Overview

Both the S&P 500 Index (-1.15%) and the Dow Jones Industrial Average (-0.32%) retreated for the fund flows trading week. There was a plethora of economic news for investors to digest during the week, including (1) influential quarterly earnings releases from several of the FAANG stocks, (2) gross domestic product growth of 4.1% for Q2 2018, and (3) the Federal Reserve leaving interest rates unchanged at its mid-week policy meeting.

The most impactful of the tech company earnings announcements came from Facebook (FB). It reported lower-than-anticipated quarterly sales and offered weak guidance, which resulted in the largest one-day loss of market value ($120 billion) in the history of the stock market as Facebook’s stock price fell 19%. After this record-setting loss positive results from Amazon.com (AMZN) and Apple (AAPL) helped stem some of the negative tide.

Amazon.com posted earnings that were twice what were expected and represented the firm’s largest quarterly profit ever. Meanwhile, Apple reported for Q2 (typically a weak quarter for the firm) its highest revenue ever. GDP - the main driver of the level of the stock market - came in at 4.1% for Q2 - the fastest rate of growth in roughly four years.

The Fed left the federal funds rate unchanged at 1.75% to 2.00% at its latest meeting as expected. It also indicated the market should expect another rate

This article was written by

Pat Keon, CFA profile picture
Pat Keon is a senior research analyst at Lipper specializing in U.S fund classifications and portfolio analytics. Pat joined the firm in 2005 and has worked in the research and portfolio groups during his tenure. Pat has earned an MBA from Regis University (Denver, CO) and a Bachelor's from Iona College (New Rochelle, NY).

Analyst’s 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.

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