May 16, 2018

Fund Investors and APs Warm to Domestic Equity Funds and ETFs in April

by Tom Roseen.

While for the second consecutive month money market funds witnessed net outflows, handing back $1.2 billion for April, for the second month in a row both the stock & mixed-asset funds and fixed income funds macro-groups witnessed net inflows, taking in $7.9 billion and $6.0 billion, respectively. Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs—injecting $12.2 billion. And for the seventeenth consecutive month they were net purchasers of bond ETFs—injecting $15.9 billion for April.

For the first month in 11 U.S. Diversified Equity (USDE) Funds witnessed net inflows (+$11.5 billion for April). The main attractor of assets in the 4×3-matrix subgroup for the month was Multi-Cap Core Funds (+$22.3 billion). APs were net purchasers of all five equity-based ETF macro-classifications: USDE ETFs (+$7.5 billion), World Equity ETFs (+$4.3 billion), Alternatives ETFs (+$255 million), Mixed-Asset ETFs (+$97 million), and Sector Equity ETFs (+$53 million). In this segment I highlight the April fund-flow results for both types of investment vehicles.

Highlights:

  • For the ninth month in ten mutual fund investors were net purchasers of fund assets, injecting $12.7 billion into the conventional funds business for April. Once again, only money market funds (-$1.2 billion) witnessed net outflows for April, while investors were net purchasers of stock & mixed-asset funds (+$7.9 billion) and fixed income funds (+$6.0 billion).
  • For the first month in 11 Thomson Reuters Lipper’s USDE Funds macro-classification witnessed net inflows, attracting $11.5 billion for April.
  • For the first month in three APs were net purchasers of ETFs, injecting $28.1 billion for April. APs padded the coffers of stock & mixed-asset ETFs and bond ETFs, injecting a net $12.2 billion and $15.9 billion, respectively.
  • For the first month in three USDE ETFs (+$7.5 billion for April) attracted the largest net draw of the five broad-based equity ETF macro-classifications.

Click here to download the April 2018 FundFlows Insight Report: Fund Investors and APs Warm to Domestic Equity Funds and ETFs in April.

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