SCHI - Investors pump $61B into money market funds after injecting $115B last week

2023-03-31 09:06:57 ET

For the fifth consecutive week financial participants were net buyers of fund assets which included both conventional funds and exchange traded funds as they pumped $39.8B into the fund space for the week ending on March 29.

While investors were overall net purchasers, the headline figure is misleading in that money market funds represented the bulk of the story as they attracted $61.5B after taking in $115B in the previous week. At the same time equity funds watched $20.5B head for the doors, taxable bond funds lost $983M, and tax-exempt fixed income funds took back $194M.

For the second week in three, equity ETFs observed net outflows as the space lost $12.6B on the week. Leading the outflow charge was the popular SPDR S&P 500 ETF ( NYSEARCA: SPY ) and Invesco QQQ Trust 1 ( NASDAQ: QQQ ) as the two gave back $3.6B and $2.8B, respectively.

From an inflow stance the two equity funds that pulled in the most significant amount of investor capital were the First Trust Nasdaq Semiconductor ETF ( FTXL ) at $781M and the First Trust Consumer Discretionary AlphaDEX Fund ( FXD ), which pulled in $770M.

From a fixed income ETF vantage point, the segment saw its largest inflows come from the Schwab 5-10 Year Corporate Bond ETF ( SCHI ) and the iShares 20+ Year Treasury Bond ETF ( TLT ). SCHI attracted $2B while TLT brought in $948M.

In reverse, the iShares iBoxx $ High Yield Corporate Bond ETF ( NYSEARCA: HYG ) experienced the largest outflows at $975M which was followed by the iShares iBoxx $ Investment Grade Corporate Bond ETF ( NYSEARCA: LQD ) as it gave back $432M.

Fund flow data is per the latest Refinitiv Lipper fund-flow report.

In broader financial news, major market averages trade higher as PCE inflation moderates.

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