Fund And ETF Investors Give World Equity Funds The Cold Shoulder In August

Sep. 16, 2022 11:06 PM ETVOO, SPYD, VEA, BBEU, XLF, GLD, SQQQ, SPXU, BND, HYG
Tom Roseen profile picture
Tom Roseen
1.52K Followers

Summary

  • For the eighth straight month, mutual fund investors were net redeemers of fund assets, withdrawing $55.3 billion from conventional funds for August.
  • Fixed income funds (+$1.9 billion) witnessed net inflows for the first month in nine, while money market funds (-$8.2 billion) suffered net redemptions for the first month in three.
  • For the seventeenth straight month, investors were net sellers of stock & mixed-assets funds (-$48.9 billion).
  • APs were net purchasers of ETFs, injecting $40.5billion for August.
  • And, for the seventh straight month, fixed income ETFs (+$13.9 billion) witnessed net inflows while investors were net purchasers of stock & mixed-assets ETFs (+$26.6 billion).

The Fed - Federal Reserve - Central Bank

Douglas Rissing

Investors were net redeemers of mutual fund assets for the eighth month in a row, redeeming $55.3 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below) for August. For the seventeenth month running, stock & mixed-assets funds experienced net outflows (-$48.9 billion). Despite the 10-year Treasury yield rising 48 basis points (bps) during the month, the fixed income funds macro-group—for the first month in nine—witnessed net inflows, taking in $1.9 billion. Money market funds (-$8.2 billion) witnessed net outflows for the first month in three.

For the fourth consecutive month, ETFs attracted net new money, taking in $40.5 billion for August. Authorized participants (APs—those investors who create and redeem ETF shares) were net purchasers of stock & mixed-assets ETFs—also for the fourth month in a row—injecting $26.6 billion into equity ETF coffers. For the seventh month in a row, they were net purchasers of bond ETFs—injecting $13.9 billion for the month. APs were net purchasers of four of the five equity-based ETF macro-classifications, padding the coffers of U.S. Diversified Equity ETFs (+$22.1 billion), Alternatives ETFs (+$3.5 billion), Sector Equity ETFs (+$1.1 billion), and Mixed-Assets ETFs (+$297 million), while being net sellers of World Equity ETFs (-$321 million).

In this report, I highlight the August 2022 fund-flows results and trends for both ETFs and conventional mutual funds (including variable annuity underlying funds).

FUNDFLOWSINSIGHT REPORT
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This article was written by

Tom Roseen profile picture
1.52K 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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