Investors were net redeemers of mutual fund assets for the second month in row, withdrawing $15.0 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below) for July. For the fourth month in a row, stock & mixed-assets funds experienced net outflows (-$11.8 billion). The Treasury yield curve continued to flatten during the month, pushing the fixed income funds macro-group to its fifteenth consecutive month of net inflows, attracting $20.5 billion for July. Money market funds (-$23.8 billion) witnessed net outflows for the second consecutive month. Over the last seven months, stock & mixed-assets funds handed back $167.5 billion, while bond and money market funds attracted $344.6 billion and $173.7 billion, respectively, of net new money.
For the twenty-third straight month, ETFs witnessed net inflows, taking in $54.1 billion for July. Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the fourteenth consecutive month, injecting $36.3 billion into equity ETF coffers. And for the sixteenth month in a row, they were net purchasers of bond ETFs—injecting $17.8 billion for the month. APs were net purchasers of all five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$21.1 billion), World Equity ETFs (+$13.3 billion), Alternatives ETFs (+$807 million), Mixed-Assets ETFs (+$757 million), and Sector Equity ETFs (+$323 million). Over the last seven months, stock & mixed-assets ETFs took in $385.1 billion and bond ETFs attracted $125.6 billion of net new money.
In this report, I highlight the July 2021 fund-flows results and trends for both ETFs and conventional mutual funds.
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