MutualFundWire.com: Money Funds Drive a $49B Reversal

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Friday, October 6, 2023

Money Funds Drive a $49B Reversal

A 70-fold increase in money fund flows drove a $49.4-billion industry flows reversal this week, according to the latest data from the LSEG Lipper team.

Jack Fischer
LSEG Lipper
Senior Research Analyst

In the U.S. Weekly FundFlows Insight report for the week ending October 4, 2023 (i.e. Wednesday), Jack Fischer, senior research analyst at LSEG Lipper, reveals that $32.9 billion net flowed into mutual funds and ETFs in the U.S. this week. It was the industry's first week of inflows in three weeks, up from $16.5 billion in net outflows last week. Long-term (i.e. non-money-market) funds suffered $11.6 billion in net outflows this week, down week-over-week from $17.133 billion.

On the one hand, money market funds brought in $44.5 billion in net inflows this week. That's up W/W from $633 million.

On the other hand, taxable fixed income funds suffered $6.5 billion in net outflows this week, a new 2023 record, up W/W from $3.9 billion. Equity funds suffered $1.9 billion in net outflows this week (down W/W from $9.1 billion), tax-exempt fixed income funds suffered $1.3 billion in net outflows (down W/W from $1.4 billion), alternatives funds suffered $992 million in net outflows (roughly unchanged W/W), mixed assets funds suffered $552 million in net outflows (down W/W from $635 million), and commodities funds suffered $482 million in net outflows (down W/W from $1.2 billion).

Equity ETFs brought in $4.7 billion in net inflows this week. It was their first week of inflows in three weeks, up W/W from $2.3 billion in net outflows.

This week's biggest equity ETF winner was BlackRock's iShares Core S&P 500 ETF (IVV). The fund brought in $7.8 billion in net inflows this week.

Conventional (i.e. non-ETF) equity funds suffered $6.6 billion in net outflows this week. It was their 64th week of outflows in a row, down W/W from $6.8 billion.

Taxable fixed income ETFs suffered $132 million in net outflows this week. It was their second week of outflows in a row, down W/W from $778 million.

This week's biggest taxable fixed income ETF winner was SSGA's SPDR Bloomberg 1-3 Month T-Bill ETF (BIL). The fund brought in $877 million in net inflows this week.

Conventional taxable fixed income funds suffered $6.3 billion in net outflows this week. It was their fourth week of outflows in a row, up W/W from $3.1 billion.

Municipal bond ETFs brought in $74 million in net inflows this week. It was their fourth week of inflows in a row, up W/W from $28 million.

Conventional muni bond funds suffered $1.3 billion in net outflows this week. It was their ninth week of outflows in a row, down W/W from $1.4 billion.

Editor's Note: The LSEG Lipper team is switching to powering these reports with data from their Global Fund Flows application. Meanwhile, the reports' prior data source, the Lipper U.S. Fund Flows application, was scheduled to be decommissioned last Saturday.

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