Flows Into ETFs Outpace Those To Conventional Funds In November

Dec. 16, 2021 12:18 AM ETVTI, IWF, VEA, AAXJ, XLV, XLE, QYLD, TZA, IEF, HYG1 Comment
Tom Roseen profile picture
Tom Roseen
1.51K Followers

Summary

  • For the fourth consecutive month, mutual fund investors were net purchasers of fund assets, injecting $45.8 billion into conventional funds for November.
  • Fixed income funds (+$22.7 billion for November) witnessed net inflows for the nineteenth month in a row, while money market funds (+$66.3 billion) experienced net inflows for the fourth consecutive month.
  • For the eighth straight month, investors were net sellers of stock & mixed-assets funds (-$43.1 billion).
  • APs were net purchasers of ETFs, injecting $74.8 billion for November, for their twenty-seventh month of consecutive inflows.
  • And, for the twentieth month in a row, fixed income ETFs (+$14.1 billion for November) attracted net new money while investors padded the coffers of stock & mixed-assets ETFs (+$60.7 billion), their eighteenth straight month of net inflows.

Wall street sign in New York with New York Stock Exchange background

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Investors were net purchasers of mutual fund assets for the fourth month in a row, injecting $45.8 billion into the conventional funds business (excluding ETFs, which are reviewed in the section below) for November. For the eighth month running, stock & mixed-assets funds experienced net outflows (-$43.1 billion). Despite the Treasury yield curve continuing to flatten for the month, the fixed income funds macro-group took in net new money for the nineteenth consecutive month, taking in $22.7 billion for November. Money market funds (+$66.3 billion) attracted net new money for the fourth straight month. Over the last 11 months, conventional stock & mixed-assets funds handed back $288.0 billion, while bond and money market funds attracted $457.2 billion and $279.4 billion, respectively, of net new money.

For the twenty-seventh straight month, ETFs witnessed net inflows, taking in $74.8 billion for November. Authorized participants (APs—those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs for the eighteenth consecutive month, injecting $60.7 billion into equity ETF coffers. And for the twentieth month in a row, they were net purchasers of bond ETFs—injecting $14.1 billion for the month. Once again, APs were net purchasers of all five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$44.7 billion), World Equity ETFs (+$9.7 billion), Sector Equity ETFs (+$5.0 billion), Alternatives ETFs (+$890 million), and Mixed-Assets ETFs (+$293 million). Year to date, stock & mixed-assets ETFs took in $593.3 billion and bond ETFs attracted $190.2 billion of net new money.

In this report, I highlight the November 2021 fund-flows results and trends for both ETFs and conventional mutual funds.

FUNDFLOWSINSIGHT REPORT
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This article was written by

Tom Roseen profile picture
1.51K Followers
Tom Roseen is the Head of Research Services, joining from Janus in 1996. He is the editor and an author of Lipper's U.S. Research Studies, FundFlows Insight Reports and FundIndustry Insight Reports. He is involved in fund analysis and research, and contributes to the monthly and quarterly equity and fixed income FundMarket Insight reports, webcasts and podcasts, where he focuses on domestic and world fund performance and attribution. His areas of expertise include closed-end fund analysis, portfolio evaluation, equity and fixed income fund research, fund flows analysis, after-tax performance and Lipper Leaders. Tom has a BS in finance from Metropolitan State College of Denver and a Master's in International Management from the University of Denver.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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