U.S. Weekly FundFlows Insight Report: Money Market Funds Suffer Net Negative Flows For The Twelfth Straight Week

Refinitiv Lipper’s fund asset groups (including both mutual funds and ETFs) experienced net outflows of $4.7 billion for the fund-flows trading week ended Wednesday, October 14. This week’s results marked the tenth straight overall net negative result for funds. Money market funds (-$18.9 billion) were responsible for all of this week’s net outflows, while taxable bond funds (+$11.2 billion), equity funds (+$2.4 billion), and municipal bond funds (+$614 million) all took in net new money.

Market Overview

The equity indices all recorded gains for the third consecutive fund-flows trading week as the Dow Jones Industrial Average, Nasdaq Composite Index, and S&P 500 Index posted increases of 3.6%, 2.0%, and 0.7%, respectively.

The equity markets recorded all of their gains during the first part of the trading week on renewed optimism that the federal government would soon pass another financial stimulus package. The markets faded in the second half of the week as stimulus talks appeared to have stalled and after news broke that two COVID-19 vaccine trials (Johnson & Johnson and Eli Lilly) were paused due to safety concerns.

ETFs

ETFs (+$15.6 billion) took in net new money for the third straight week. All three fund asset groups recorded net positive flows led by equity ETFs (+$10.9 billion) and followed by taxable bond (+$4.4 billion) and muni bond (+$192 million) ETFs. Among the equity asset group, the largest individual net inflows belonged to Invesco QQQ ETF (QQQ, +$5.2 billion), iShares Russell 2000 ETF (IWM, +$2.2 billion), and iShares ESG Aware MSCI USA ETF (ESGU, +$1.5 billion). For taxable bond funds, iShares MBS ETF (MBB), iShares iBoxx $ High Yield Corporate Bond ETF (HYG), and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) led the way with net inflows of $1.1 billion, $989 million, and $527 million, respectively.

Equity Mutual Funds

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