10 Straight Weeks Of Equity Inflows As All The New Money Goes To ETFs

The flood of retail money into the global stocks showed no sign of relenting in the latest week, after investors around the globe pumped money into stocks for the tenth straight week, according to EPFR data cited by BofA, which showed some $11.8 billion in equity inflows, however in continued disappointment for active asset managers, over $15 billion of was allocated to ETFs, while mutual funds saw another outflow of $3.6 billion.

In total, global stocks have attracted a whopping $82.4 billion YTD, with $106.9 billion going to ETFs as mutual funds have seen $24.5 billion in outflows. 2017 equity inflows have now surpassed bond inflows which stood at $80 billion YTD, while commodities attracted only $5 billion in retail cash. However, putting this number in longer-term context, since March 09, bond funds have recorded $1.5 trillion inflows (66% of AUM) vs just $256 billion inflows (3% AUM) for equity funds.

The details:

  • Equities: $11.8bn inflows (10 straight weeks); $3.6bn mutual fund outflows vs $15bn ETF inflows)
  • Bonds: $4.6bn inflows (11 straight weeks)
  • Commodities: small $0.1bn outflows (first in 6 weeks)

In terms of geographic distribution, the bulk of the YTD inflows ($75.8 BN) have gone to DMs, of which the US and Japan have been the primary beneficiaries, with $30Bn and $16Bn respectively, while Europe has seen only $1.3Bn in inflows.

The details in the chart above:

  • Europe: $1bn inflow (positive 6 of the last 7 weeks)
  • US: $7.2bn inflows (positive 5 of the last 6 weeks)
  • Japan: $1.2bn inflows (9 straight weeks)
  • EM: $0.7bn inflow (positive 8 of the last 9 weeks)

By sector: financials saw the largest sector inflows ($1.6bn; positive 5 of the last 6 weeks); largest inflows to REITs in 8 weeks ($0.7bn); first outflows from materials in 8 weeks ($0.4bn); inflows to energy 7 of the last 8 weeks ($0.3bn); 9 straight weeks of inflows to infrastructure ($0.1bn); consumer, telcos, and utilities small sector losers.

Narrowing the inflows down furter, tech sector funds seeing biggest inflows YTD on annualized basis since 2009; by contrast inflows to Energy funds in 2017 continuing their modest trajectory of recent years

Some additional details on Fixed Income Flows

  • $4.3bn inflows to IG bond funds (11 straight weeks)
  • $0.5bn outflows from Govt/Tsy funds (6 straight weeks)
  • $2.1bn inflows to EM debt funds (6 straight weeks)
  • $2.7bn outflows from HY bond funds (first outflow in 7 weeks; largest in 16 weeks)
  • $1.2bn inflows to bank loans (17 straight weeks)
  • $0.4bn inflows to TIPS funds (13 straight weeks)
  • $0.1bn outflows from muni bond funds (2 straight weeks)

Source: BofA