2013 and 2014 mark the first two years since 2007 in which equity fund nominal annual cash inflow tallies have outweighed those of bond funds.
Contrasting last week’s trends, most broad fund categories recorded net cash inflows this week. Domestic equity ETFs brought in the largest weekly net cash inflow of the year for the category.
Negative cash flows were the trend across major fund subsets in the latest week; bond ETFs were the only category to buck the trend.
Domestic equity ETF net cash inflows continued this week at a decelerated pace; the large cap subset, however, saw net cash outflows.
Domestic equity ETF net cash flows have been positive for the past five of six weeks, while domestic equity mutual fund net flows have been negative in four of the past five.
Weekly net cash inflows to domestic equity ETFs of $6.8 billion pushed YTD flow tallies ($91.6 billion) above those collected over the same period in 2013.
Domestic equity ETF flows transitioned to slight negative net cash flows this week after three straight weeks of robust inflows. Bond ETFs also saw net outflows after six consecutive weeks of net inflows.
Over the past three weeks investors have plowed a net $35 billion into domestic equity ETFs. Bond ETF flows have also been robust, collecting a net $16 billion over the past six weeks.
All broad fund categories saw positive net cash flows for the week ended 11/5. Domestic equity ETF flows were particularly noteworthy, capturing a net $15 billion.
Bond mutual funds have seen persistent negative net cash flows, and YTD flows are now about $40 billion lighter versus tallies recorded just one month ago.