Violent rotation: record inflows to equity ETFs, record inflows to financial sector funds, biggest bond redemptions in 3½ years, record redemptions from EM debt.
“Great Rotation” flows: largest equity inflows in 2 years ($28bn), biggest bond outflows in 3½ years ($18bn); widest weekly disparity between stock & bond flows ever.
- Equities: largest inflows in 2 years ($27.5bn) ($34bn inflows to
- ETFs offset by $7bn outflows from mutual funds)
- Bonds: largest outflows since Jun’13 ($18.1bn)
- Precious metals: largest outflows since Jun’13($2.7bn)
>>> Equity Flows
- EM: largest weekly outflows in 14 months ($5.4bn)
- US: largest weekly inflows in 2 years ($30.7bn)
- Europe: rare $0.8bn inflows (largest in 9 months)
- Japan: $1.0bn outflows (outflows in 3 of past 4 weeks)
By sector: monster inflows to financials ($7.2bn) & healthcare ($3.1bn); largest materials inflows in 3 years ($1.4bn); 7 straight weeks of consumer outflows ($0.8bn)
>>> Fixed Income Flows
- Record outflows from EM debt funds ($6.6bn)
- Largest outflows from muni bond funds since Jun’13 ($3.0bn)
- Largest outflows from Govt/Tsy funds in 12 months ($3.4bn)
- Chunky $3.8bn outflows from HY bond funds (3 straight weeks)
- $2.4bn outflows from IG bond funds
- 23 straight weeks of TIPS inflows ($0.8bn)
- Inflows to bank loan funds in 18 of past 20 weeks ($0.6bn)