For the week ended Wednesday, October 17, investors injected $10.6 billion into open-end funds and exchange-traded funds and another $13.1 billion into money market funds, according to data from Lipper.
According to Tom Roseen, Head of Research Services at Lipper, for the second week in three all types of equity funds suffered net outflows, witnessing $2.6 billion in net redemptions, while money market funds (+$10.6 billion), taxable bond funds (+$4.5 billion), and municipal bond funds (+$0.6 billion) continued to attract net new money.
And the redemptions spilled over to equity ETFs, which gave back some $2.7 billion. “As has been the case in recent weeks, one ETF—SPDR S&P 500 ETF (-$2.1 billion)—accounted for the majority of movement in the equity ETF universe,” Roseen wrote.
“iShares: S&P 100 Index Fund also suffered large redemptions (-$709 million). Investors bid up small-cap issues, pushing the iShares Russell 2000 Index Fund (IWM), taking in a net $0.4 billion, to the top of the group.”
But the good news for fixed income offerings continue with investors committing $2.4 billion into the taxable fixed income space, $0.9 billion into corporate investment-grade debt funds, $0.6 billion into government-mortgage funds, and $0.5 billion into flexible funds.