March 16, 2018

Fund Investors and APs Are Net Redeemers of Equity Funds and ETFs for February

by Tom Roseen.

For the eleventh month in 12 stock & mixed-asset mutual funds witnessed net outflows, handing back $12.8 billion for February, and for the first month in 14 fund investors were net sellers of fixed income mutual funds, withdrawing $1.3 billion from the macro-group. For the first month since May 2016 authorized participants (APs, those investors who actually create and redeem ETF shares) were net redeemers of stock & mixed-asset ETFs—withdrawing $10.1 billion. However, for the fifteenth consecutive month they were net purchasers of bond ETFs—injecting $2.1 billion for February.

Despite World Equity Funds taking it on the chin in February, declining 4.43% on average for the month and underperforming the average USDE fund (-3.61%), mutual fund investors continued to embrace international issues. For the fifth consecutive month fund investors were net purchasers of the World Equity Funds macro-classification, injecting $11.6 billion for February. APs were net redeemers of four of the five equity-based ETF macro-classifications: USDE ETFs (-$16.2 billion), Sector Equity ETFs (-$2.6 billion), Alternatives ETFs (-$1.2 billion), and Mixed-Asset ETFs (-$0.2 billion), but they were net purchasers of World Equity ETFs (+$10.2 billion) for the fifteenth consecutive month. In this segment I highlight the February fund-flow results for both types of investment vehicles.

Highlights

  • For the eighth straight month mutual fund investors were net purchasers of fund assets, injecting a net $26.6 billion into the conventional funds business. However, only money market funds (+$40.8 billion) witnessed net inflows for January, while investors were net redeemers of stock & mixed-asset funds (-$12.8 billion) and fixed income funds (-$1.3 billion—for the first month in 14).
  • For the fifth consecutive month world equity funds witnessed net inflows, attracting $11.6 billion for February.
  • For the first month in 25 authorized participants (APs) were net redeemers of ETFs, withdrawing $8.0 billion for February. APs redeemed a net $10.1 billion from stock & mixed-asset ETFs but were net purchasers of bond ETFs, injecting a net $2.1 billion.
  • For the first month in seven World Equity ETFs (+$10.2 billion for February) attracted the largest (only) net draw of the five broad-based equity ETF macro-classifications.

Click here to download the February 2018 FundFlows Insight Report: Fund Investors and APs Are Net Redeemers of Equity Funds and ETFs for February.

Thomson Reuters Lipper delivers data on more than 265,000 collective investments in 61 countries. Find out more.

Get In Touch

Subscribe

Related Reports

With the Federal Reserve’s preferred measure of inflation (the personal consumption ...

Thomson Reuters Lipper’s fund asset groups (including both mutual funds and ETFs) had ...

Fixed income funds lost ground for the second consecutive quarter, with a return of ...

Science and technology funds (including both mutual funds and ETFs) have taken in $2.7 ...