MutualFundWire.com: Fixed Income Drives a $32B Flows Reversal
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Friday, January 13, 2023

Fixed Income Drives a $32B Flows Reversal


Net flows into long-term funds improved by more than $32 billion last week, thanks to big inflows into bond funds (including record-breaking inflows into taxable bond ETFs), according to the latest data from LSEG's Refinitiv Lipper team.

Tom Roseen
 Refinitiv Lipper
Head of Research Services
In the U.S. Weekly FundFlows Insight report for the week ending January 11, 2023 (i.e. Wednesday), Tom Roseen, head of research services at Refinitiv Lipper, reveals that $2.3 billion net flowed into mutual funds and ETFs in the U.S. this week. It was the industry's third week of inflows in a row, down from $37.06 billion last week. Long-term (i.e. non-money market) funds brought in $11.7 billion in net inflows this week, up from $20.74 billion in net outflows.

Taxable fixed income funds led the way with an estimated $11 billion in net inflows this week; it was their largest weekly inflows since February 2021, up from $2.1 billion in net outflows last week. And tax-exempt fixed income funds brought in $2 billion in net inflows this week; it was their largest weekly inflows since July 2021, up from $2.5 billion in net outflows last week.

On the flip side, money market funds suffered $9.4 billion in net outflows this week, down from $57.8 billion in net inflows last week. And equity funds suffered $1.2 billion in net outflows this week, down from $16.2 billion.

Equity ETFs brought in $2 billion in net inflows this week. It was their second week of inflows in three weeks, up from $7 billion in net outflows last week.

Domestic equity ETFs suffered $1.3 billion in net outflows this week, their second week of outflows in a row. Yet non-domestic equity ETFs brought in $3.3 billion in net inflows, their largest weekly inflows since April 2022.

This week's biggest equity ETF winner was SSGA's Industrial Select Sector SPDR ETF (XLI), with $1.1 billion in net inflows.

Conventional (i.e. non-ETF) equity funds suffered $3.2 billion in net outflows this week. It was their 49th week of outflows in a row, down from $9.2 billion last week.

Conventional domestic equity funds suffered $1.8 billion in net outflows this week, their second week of outflows in a row. And conventional non-domestic equity funds suffered $1.3 billion in net outflows, their 41st week of outflows in a row.

On the fixed income side, taxable fixed income ETFs brought in $9.8 billion in net inflows this week. It was their third week of inflows in a row and their biggest weekly inflows ever since the Lipper team began tracking their flows back in 2002.

This week's biggest taxable fixed income ETF winner was BlackRock's iShares iBoxx $ High Yield Corporate Bond ETF (HYG), with $1.6 billion in net inflows.

Municipal bond ETFs brought in $454 million in net inflows this week. It was their third week of inflows in a row, down from $621 million last week.

This week's biggest muni bond ETF winner was the iShares National Muni Bond ETF (MUB), with $342 million in net inflows.

Conventional taxable fixed income funds brought in $1.2 billion in net inflows this week. It was their first week of inflows in 21 weeks, up from $6.8 billion in net outflows last week.

Conventional muni bond funds brought in $1.5 billion in net inflows this week. It was also their first week of inflows in 21 weeks, up from $3.1 billion in net outflows last week.


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