$221.6 billion injected in net purchases of ETFs by market participants in Q1
Apr. 06, 2021 1:19 PM ETVanguard Mid-Cap Value ETF (VOE), VB, VO, XLE, USO, GLDGLD, XLE, VB, VO, VBR, USO, VOEBy: Jason Capul, SA News Editor8 Comments
- In the latest Fund Market Insight Report by Refnitiv Lipper, investors saw equity funds post a fourth consecutive quarterly gain of +6.31%.
- Breaking down the report and market participants can see where investment flows went over the first quarter of 2021.
- Exchange traded fund investors were net purchasers for Q1 +$221.6B, injecting $182.2B into equity ETFs which saw their twentieth consecutive quarter of net inflows, $34.4B into taxable fixed-income ETFs, and $4.9B into municipal debt ETFs.
- Additionally, for the first quarter in three, market participants were net purchasers of money market funds +$185.8B.
- Small-cap value funds were at the top of the performance list, having their best showing since the Q4 of 2016, +22.12% on the quarter. After small-cap value came small-cap core funds +15.90%, mid-cap value funds +15.19%, and S&P mid-cap 400 index funds +13.3%.
- Each of the above performances reflects quarterly gains, see full chart below.
- On the commodities front, there were a couple of significant areas that generated positive quarterly returns. Energy funds finished the quarter +20.97% and benefitted from a vaccine-related rise in oil futures, while precious metals funds finished to the downside -5.56%. Below is a complete breakdown of the commodities fund space for Q1.
- For investors that are interested in learning more about where momentum is heading in the future, see the full report and the following ETFs: Vanguard Small-Cap Value ETF(NYSEARCA:VBR), Vanguard Mid-Cap Value ETF (NYSEARCA:VOE), Vanguard Small Cap ETF (NYSEARCA:VB), Vanguard Mid Cap ETF (NYSEARCA:VO), Energy Select Sector SPDR ETF (NYSEARCA:XLE), The United States Oil ETF, LP (NYSEARCA:USO), and SPDR Gold Trust ETF (NYSEARCA:GLD).
- With the continued vaccine rollout and stimulus hitting the market, investors have placed themselves in a position for the economy to re-open on a positive note. Value stocks continue to gain traction over growth.
- Furthermore, that trend may continue now that President Biden is set to announce the vaccine eligibility date has moved up to April 19th.