Net flows into money market funds improved by more $82 billion from two weeks, reaching heights not seen for more than a year and a half, according to the latest data from LSEG's Refinitiv Lipper team.

Jack Fischer Refinitiv Lipper Senior Research Analyst

In the U.S. Weekly FundFlows Insight report for the week ending January 4, 2023 (i.e. Wednesday) (the first such report of the new year), Jack Fischer, senior research analyst at Refinitiv Lipper, reveals that $37.06 billion net flowed into mutual funds and ETFs in the U.S. this week. It was the industry's second week of inflows in three weeks, up from $61.4 billion in net outflows two weeks ago (when the Refinitiv Lipper team issued their last such report of 2022). Long-term (i.e. non-money market) funds suffered $20.74 billion in net outflows this week, down from $37 billion.

Money market funds led the way with an estimated $57.8 billion in net inflows this week. It was their largest weekly inflows since May 2021 and up from $24.4 billion in net outflows two weeks ago.

On the flip side, equity funds suffered $16.2 billion in net outflows this week, down from $19.5 billion two weeks ago. Tax-exempt fixed income funds suffered $2.5 billion in net outflows this week, down from $3.1 billion. And taxable fixed income funds suffered $2.1 billion in net outflows this week, down from $14.4 billion.

Equity ETFs suffered $7 billion in net outflows this week. It was their second week of outflows in three weeks, down from $17 billion two weeks ago.

This week's biggest equity ETF winner was the Schwab: US Dividend Equity ETF (SCHD), with $389 million in net inflows.

Conventional (i.e. non-ETF) equity funds suffered $9.2 billion in net outflows this week. It was their 48th week of outflows in a row, up from $2.5 billion two weeks ago.

Fixed income ETFs brought in $4.7 billion in net inflows this week. It was their fourth week of inflows in five weeks, up from $6.1 billion in net outflows two weeks ago.

This week's biggest taxable fixed income ETF winner was BlackRock's iShares: 0-3 Month Treasury Bond ETF (SGOV), with $1.2 billion in net inflows.

Municipal bond ETFs brought in $621 million in net inflows this week. It was their 12th week of inflows in the last 15 weeks, up from $313 million in net outflows two weeks ago.

Conventional taxable fixed income funds suffered $6.8 billion in net outflows this week. It was their 20th week of outflows in a row, down from $8.3 billion two weeks ago.

Conventional muni bond funds suffered $3.1 billion in net outflows this week. It was also their 20th week of outflows in a row, up from $2.8 billion in net outflows two weeks ago. Fischer notes that conventional muni bond funds only brought in five weeks of net inflows in all of 2022. 

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