Taxable bond funds and ETFs attract the biggest long-term net inflows of the week



Investors were broadly net buyers of fund assets (including conventional funds and ETFs) for the fifth week in a row, injecting a net $ 17.5 billion, for the week of fund flow. Refinitiv Lipper closed on November 17, 2021. Investors in the fund were net buyers. money market funds (+ $ 11.9 billion), taxable bond funds (+ $ 4.7 billion) and tax-exempt fixed income funds (+ $ 1.4 billion), while being net redeemers of equity funds (- $ 465 million) over the week.

Conclusion of the contract

Markets remained constrained during fund flow week, as investors continued to welcome strong third quarter results and a better-than-expected October report, while keeping a watchful eye for market disruptions. supply chain, prices and interest rates. Broad indexes remained a striking distance from new highs, but ended the week generally flat, with the exception of, which benefited from a late pullback in Treasury yields and a subsequent rally in tech stocks to large cap.

On the domestic side of the equation, the NASDAQ Composite Price Only Index (+ 1.91%) posted the highest returns of the widely followed US indices for Fund Flow Week. It was followed by the Price Only Index (+ 0.90%). The price index alone (-0.53%) saw the biggest drops of the week. Abroad, the Price Only index (+ 1.44%) recorded the best performance of the large-scale international indices that are often followed, while the Price Only index (-0.73%) suffered the strongest. drops.

On Thursday, November 11, 2021, US stocks ended mostly higher on chipmaker gains despite disappointing earnings news from Disney (NYSE :). The bond market was closed on Veterans Day. The stock market posted modest gains after experiencing declines on Wednesday, November 10, triggered by U.S. inflation data which showed a 6.2% year-on-year rise, a high of nearly 31 years and significantly above the Federal Reserve’s target rate of 2%.

On Friday, November 12, the index managed to close above the 36,000 mark, despite lingering concerns about inflation. As might be expected given these growing concerns, the University of Michigan’s November indicator slipped to 66.8 from 71.7 the month before, its lowest level since 2011. It rose. seven basis points (bps) for the week, closing at 1.58% on the day.

On Monday, November 15, all three major indices closed for the day as investors continued to focus on inflation concerns and digest the possible impact of President Joe Biden’s enactment of the spending bill. $ 1 trillion infrastructure. The 10-year Treasury yield jumped five basis points to close the day at 1.63% as many experts expect the Federal Reserve to step up its plans to cut amid signs of persistent inflation . First month crude oil futures edged up to $ 80.88 per barrel (bbl).

NASDAQ led US indices higher on Tuesday, November 16, after the government announced that US retail sales in October rose 1.7%, their largest month-over-month increase since March, exceeding analysts’ expectations of a 1.5% increase. Meanwhile, the month of US October climbed 1.6% seasonally adjusted, beating economists’ expectations by 0.8%.

Despite the gains from large-cap tech stalwarts Tesla (NASDAQ 🙂 and Apple (NASDAQ 🙂 for the day, US indices generally ended lower on Wednesday, November 17, as inflationary and COVID concerns continued to control prices. markets. A three basis point drop in the yield on 10-year Treasuries helped lift large-cap tech stocks. However, U.S. crude oil prices fell 3% to $ 78.36 a barrel after President Biden said there was “growing evidence of anti-consumer behavior from oil and gas companies “in a letter to the Federal Trade Commission. Nearly the month stood at $ 1,870.20 / oz, its highest level since June.

Exchange Traded Equity Fund

Equity ETFs experienced their seventh straight week of net inflows, taking in $ 1.8 billion for the most recent week of fund inflows. Authorized Participants (APs) were net domestic equity ETF buyers (+ $ 878 million), also pumping in money for the seventh week in a row. However, for the twenty-first week in a row, non-domestic equity ETFs posted net inflows, attracting $ 875 million last week. Other sector ETFs ($ 1.0 billion) attracted the most net new money, followed by international equity ETFs (+ $ 860 million) and equity income ETFs (+669 millions of dollars). Meanwhile, energy sector ETFs (- $ 688 million) suffered the largest net redemptions from equity ETF macro groups for flow week.

IShares Core S&P 500 ETF (, +1.3 billion dollars) and Invesco S&P 500 Low Volatility ETF (, + $ 744 million) attracted the largest amounts of net new money of any individual equity ETF. At the other end of the spectrum, SPDR S&P 500 ETF (, – $ 3.1 billion) recorded the largest individual net redemptions, and Invesco QQQ Trust ETF 1 (, – $ 1.5 billion) suffered the second largest net redemptions of the week.

Exchange Traded Fixed Income Funds

For the sixth week in a row, taxable fixed income ETFs posted net inflows, attracting $ 2.4 billion last week. PAs were net buyers of Treasury ETFs (+ $ 2.5 billion), quality corporate ETFs (+ $ 101 million) and high yield corporate ETFs (+100 million) while being net redeemers of flexible ETFs (-207 million dollars) and states. -Mortgage FNB (- $ 138 million). IShares 20+ Treasury Bond (, + $ 834 million) and TIPS iShares Bond ETF (, + $ 535 million) attracted the largest net amounts of new money of any taxable fixed income ETF. During this time, IShares iBoxx $ Investment Grade Corporate Bond ETF (, -1.1 billion dollars) and IShares 5-10 Year Investment Grade Corporate Bond ETF (, $ -209 million) delivered the largest individual net redemptions of the week.

For the first week of 38, municipal bond ETFs saw net outflows. These, however, were minimal, with investors returning just $ 56 million this week. IShares National Short-Term Bonds AND F (, + $ 21 million) and Dimensional National Municipal Bond ETF (DFNM, + $ 10 million) saw the biggest net fresh money draws from the subgroup’s municipal bond ETFs for the week.

Conventional equity funds

Investors in conventional funds (ex-ETFs) were net sellers of equity funds for the sixth week in a row, repurchasing $ 2.2 billion. The macro-group recorded a market gain of 0.84% ​​for the week of cash flows. Domestic equity funds, suffering net redemptions of just under $ 2.7 billion, experienced their twenty-first consecutive week of net outflows while experiencing a market gain of 0.91% on average for fund flow week. Non-domestic equity funds, posting an average weekly return of 0.68%, posted their second week of net inflows, taking in $ 437 million.

On the domestic equity side, fund investors have been net redeemers of large-cap funds (- $ 2.2 billion) and mid-cap funds (- $ 310 million). Investors on the non-domestic equity side were net buyers of international equity funds (+ $ 564 million) but were net buyers of global equity funds (- $ 127 million) for the week. Oakmark Fund, R6 Equity (OAZMX, + $ 870 million) and MFS Growth Fund, I Equities (, + $ 478 million) attracted the largest amounts of net new money of any individual equity fund for the week.

Conventional fixed income funds

For the sixth week in a row, taxable bond funds (ex-ETFs) recorded net inflows of $ 2.3 billion last week, while recording a loss of 0.13% on average for the week in cash flows. . Investors were net buyers of corporate debt funds (+ $ 1.3 billion), flexible funds (+ $ 632 million) and funds from the Treasury (+ $ 439 million) while being net buyers of government mortgage funds (- $ 108 million) and high quality corporate funds (- $ 83 million). Baird Core Plus Bond Fund, Institutional actions (, + $ 415 million) and Virtus AllianzGl Income & Growth Fund, Institutional Equity (, + $ 265 million) received the largest net inflows of any individual taxable fixed income fund during the week.

The municipal bond fund group posted an average loss of 0.16% during the week and had its fourth straight week of net inflows, attracting $ 1.5 billion this week. High-yield municipal debt funds (+ $ 539 million) and general and insured municipal debt funds (+ $ 518 million) recorded the largest net inflows of the group, while short-lived municipal debt funds. term (- $ 168 million) suffered the largest net redemptions. Hartford Municipal Opportunities Fund, Class I Shares (, +183 million dollars) and Goldman Sachs Short Term Tax Free Fund (GANPX, + $ 128 million) recorded the largest net fresh money draws from tax-exempt fixed income funds for individuals of the week.



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