MutualFundWire.com: Weekly Money Market Outflows Quadruple, And ...

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Friday, June 18, 2021

Weekly Money Market Outflows Quadruple, And ...

Money market funds' net outflows quadrupled this week, even as fixed income funds' net inflows fell and equity funds' net flows swung negative, according to the latest data from the Lipper team at Refinitiv.

Tom Roseen
Refinitiv Lipper
Head of Research Services

In the U.S. Weekly FundFlows Insight Report for the week ended June 16, Tom Roseen, head of research services at Refinitiv Lipper, reveals that $30.1 billion net flowed out of mutual funds and ETFs in the U.S. in the past week (down from $3.7 billion in net inflows in the prior week). At the top of the outflows list were money market funds, which Roseen calls the "primary drain" this week thanks to $26.8 billion in net outflows (up week over week from $6.3 billion).

Equity funds also suffered net outflows, $7.1 billion in total (down W/W from $717 million in net inflows). Equity ETFs brought in $8.2 billion in net inflows (up W/W from $3.6 billion), thanks to $8.4 billion in net inflows into domestic equity ETFs (up W/W from $1.5 billion) and despite $197 million in net outflows from international equity ETFs (down W/W from $2.1 billion in net inflows). On the flip side, conventional equity funds (i.e. traditional open-end equity mutual funds) suffered $15.4 billion in net outflows (up W/W from $2.9 billion), thanks to $15 billion in net domestic equity conventional fund outflows (up W/W from $2.6 billion) and $350 million in net international equity conventional fund outflows (up W/W from $230 million).

Roseen notes that conventional equity funds' big outflows (also their 11th week in a row of outflows) will probably "be reversed next week," thanks to some big fund distributions this week that he expects will promptly be reinvested.

On the fixed income side, taxable bond funds brought in $2.0 billion this week (down W/W to $6.8 billion), thanks to $110 million in net inflows into taxable bond ETFs (down W/W from $970 million) and $1.9 billion in net inflows into conventional taxable bond funds (down W/W from $5.8 billion). Tax-exempt bond funds brought in $1.9 billion in inflows (down W/W from $2.5 billion), thanks to $704 million in net inflows into municipal bond ETFs (up W/W from $635 million) and $1.1 billion in net inflows into conventional muni bond funds (down W/W from $1.8 billion).

Muni bond ETFs' inflows were the largest the Lipper team has ever seen since they started tracking them weekly nearly 14 years ago, in September 2007, Roseen notes.

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