U.S. Weekly FundFlows Insight Report: Large-Cap ETFs Attract Second-Largest Weekly Inflow Of 2023

After painful ETF outflows recorded on the week April 3-7, attributed to rising fears that rising yields of long term U.S. treasury bonds will wreak havoc on the financial institutions across a wide scope, last week delivered a big relief. Fund inflows could be resulted from two major events: 1. Evidence of the U.S. inflation becoming more manageable – hence, there would be less urge for the Fed to further rise interest rates; and 2. Expectations of beginning of the companies’ Q1 2023 financial reporting.

During the Refinitiv Lipper Fund Flow Week ended April 12, 2023, investors were net buyers of fund assets, including traditional funds and ETFs, for the seventh week in a row, adding a net $28.1 billion.

Money market funds (+$25.4 billion), taxable bond funds (+$2.9 billion) and equity funds (+$53 million) posted inflows, while tax-exempt bond funds (-$256 million) posted outflows.

The Bloomberg Municipal Total Return Index (+0.43%) posted its sixth straight weekly gain, while the Bloomberg U.S. Aggregate Total Return Index (-0.53%) posted its first weekly loss in four weeks.

Overseas indices were mostly higher – Shanghai Composite (+0.40%), Dax TR (+1.79%) and FTSE 100 (+2.44%) all rose, while Nikkei 225 (-0, 86%) closed in the red.