August 9, 2013

Lipper Fund Flows: Equity Mutual Funds Draw Interest Despite Flat Stock Market

by Jeff Tjornehoj

The Dow Jones Industrial Average dipped to 15,470 from 15,499 in the week ended Wednesday, August 7, but investors maintained their fascination with equity mutual funds, making some of the heaviest commitments to their accounts so far this year.

During the week, $3.97 billion of net new money was added to the sector, with equity exchange-traded fund (ETF) receiving $2.31 billion.

However, investors’ tastes differed regarding types of equity investments, with mutual fund investors preferring small-cap stock funds and ETF investors favoring mid-caps. iShares Core S&P Mid-Cap ETF (IJH), with $2.17 billion flooding its coffers, recorded its highest weekly inflows ever.

Meanwhile, bond fund investors had very dissimilar views.

Mutual fund owners added $3.9 billion to their funds (about the same as two weeks prior) and preserved a preference for low-interest-rate-risk products such as Loan Participation Funds (+$1.72 billion) and Short Investment-Grade Debt Funds (+$602 million).

Bond ETF investors largely limited their activity to selling off iShares 3-7 Treasury Bond ETF (IEI) in Lipper’s General U.S. Treasury Funds products (-$2.41 billion). Combined mutual fund and ETF net outflows from muni funds were just under $1 billion, and money market funds had net inflows of $13.6 billion, $7.85 billion of which was from institutional investors.

For more information on this week’s fund flows data, please refer to Lipper’s website.

 
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