by Tom Roseen.
Once again, in December conventional mutual fund investors continued their search for yield and safe-haven vehicles, padding the coffers of fixed income funds and money market funds, while authorized participants (APs—those investors that actually create and redeem ETF shares) kept the equity pedal to the metal. Despite relative strong returns, mutual fund investors continued to turn their backs on stock & mixed-equity funds, redeeming some $34.8 billion for the month, while for the nineteenth consecutive month APs were net purchasers of stock & mixed-equity ETFs, injecting $47.3 billion. On the fixed income side of the equation the focus of mutual fund investors and APs remained aligned, with conventional bond funds attracting $15.2 billion net for December and bond ETFs drawing in $5.2 billion. In this segment I highlight the December and 2017 fund-flow results for both types of investment vehicles.
Click here to download the December 2017 FundFlows Insight Report: Equity ETFs Extend Winning Streak to 19 Months, While Equity Mutual Funds Suffer a Tenth Month of Net Redemptions.
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