ETF outflows decelerated from last week's levels as US equity and bond ETFs inflected positive, offsetting weak flows from non-US focused ETFs. LT MF outflows also decelerated w/w, driven by stronger muni inflows coupled with less bad equity MF outflows.
Executive summary: Long-term mutual fund flows decelerated for a fourth consecutive week, according to the latest data from EPFR Global. Domestic equity funds were the primary driver of the LT mutual fund outflows, however
less bad outflows from mid cap and small cap funds caused domestic equity outflows to decelerate w/w. International equity funds inflected positive for the first time in 9 weeks as global DM inflows offset EM outflows. On the fixed income side, domestic taxable funds inflows decelerated w/w but remained strong, driven by strength in intermediate term funds offset high yield and short term funds inflecting negative. International taxable funds generated outflows as both global DM and EM funds saw outflows for a third consecutive week. Muni funds posted their 26th consecutive week of inflows while balanced funds inflected negative for the first time in a month. Money market funds generated positive flows. ETF outflows improved considerably w/w, driven by US bond and equity ETFs inflecting positive, partially offset by worst EM equity ETF outflows since Aug. 2015