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Lipper U.S. Weekly FundFlows Insight Report: Funds Post Net Inflows Paced By Money Market Funds

Mar. 11, 2019 11:00 AM ET
Pat Keon, CFA profile picture
Pat Keon, CFA
189 Followers

Summary

  • Money market funds post net inflows of $28.0 billion.
  • Equity funds suffered net outflows of $7.0 billion.
  • Taxable bond funds saw $1.5 billion leave.

Lipper’s fund asset groups (including both mutual funds and ETFs) took in almost $20.3 billion in net new money for the fund-flows trading week ended Wednesday, March 6. Net inflows were driven by money market funds (+$28.0 billion), while municipal bond funds contributed $798 million to the total. Equity funds (-$7.0 billion) and taxable bond funds (-$1.5 billion) both saw money leave their coffers. The net negative flows for taxable bond funds broke a streak of eight consecutive weekly net inflows.

Market Overview

The major equity indices all finished down for the fund-flows trading week. The Dow Jones Industrial Average, S&P 500 Index, and the NASDAQ Composite Index fell 1.20%, 0.75%, and 0.64%, respectively. It was the first weekly losses (as measured by the fund-flows week, which is Wednesday to Wednesday) of the year for the S&P 500 and the Dow, and only the second for the NASDAQ. Year-to-date, all of the indices have double digit gains, led by the NASDAQ (+13.12%), with the S&P 500 (+10.56%) and the Dow (+10.06%) not far behind.

ETFs

ETFs suffered net outflows of $4.1 billion for the week, driven by taxable bond ETFs (-$2.6 billion) and equity ETFs (-$1.6 billion). Municipal debt ETFs had net positive flows of $85 million for the week. For taxable bond ETFs, the largest net outflows belonged to iShares iBoxx $ High Yield Corporate Bond ETF (HYG,-$1.4 billion) and iShares 20+ Year Treasury Bond ETF (TLT,-$541 million), while for equity ETFs SPDR Gold ETF (GLD, -$899 million) and iShares Russell 2000 ETF (IWM, -$787 million) were hit the hardest.

Equity Mutual Funds

Equity mutual funds (-$5.3 billion) experienced net negative flows for the third straight week. Domestic equity (-$3.7 billion) and nondomestic equity funds (-$1.6 billion) both contributed to the net outflows. Despite these outflows, both nondomestic (+$7.4 billion) and domestic funds (+$4.3 billion) have experienced positive net flows year-to-date. The biggest

This article was written by

Pat Keon, CFA profile picture
189 Followers
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.

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