Most funds struggle despite flat market and low position turnover
ETF outflows decelerated for a 2nd consecutive week, driven by strong US bond ETF inflows which offset weak flows from US & EM focused equity ETFs. Conversely, LT MF outflows accelerated w/w driven by worse outflows from domestic equity funds and more muted domestic taxable bond inflows.
Executive summary: Long-term mutual fund flows accelerated w/w, according to the latest data from EPFR Global. Domestic equity funds were the primary driver of the LT MF outflows, as outflows from large and small-cap growth funds accelerated. International equity fund flows were positive, driven by strong inflows to EM funds, offset by outflows from Global DM funds. On the fixed income side, domestic taxable funds inflows decelerated for a 2nd
consecutive week from the last 3 weeks elevated levels, driven by worse inflows to intermediate term funds, despite HY fund flows inflecting positive. International taxable funds inflected positive after 3 weeks of outflows, driven by inflows to both EM and Global DM funds. Muni funds posted their 27th consecutive week of inflows while balanced funds saw a second straight week of outflows. Money market funds generated positive flows. ETF outflows improved w/w as bond ETF inflows accelerated posting largest inflows in 10 weeks, which offset elevated US & EM equity ETF outflows.
Mutual fund flows by product: Net long-term outflows from (in orde Domestic equity and balanced; offset by inflows into international equity, international taxable fixed income, domestic taxable fixed income and muni
funds. Money market funds posted net inflows.
ETF flows: Outflows overall in the latest week (with inflows YTD), with outflows from equity ETFs and inflows to bond ETFs.