Money market funds saw significant outflows for the second week in a row
ETFs and conventional funds saw sharp pullbacks for the week ending Feb. 16, with investors withdrawing a total of $46.4 billion in funds, according to later Refinitiv Lipper Weekly Cash Flow Report.
Money markets led the exit charge with $41.9 billion coming out of the gate. This marked another big outflow from this category, following the previous week’s loss of $33.4 billion.
In addition to money markets, taxable bond funds also saw net outflows, totaling $8.1 billion, as well as tax-exempt bond funds, which lost $1.3 billion. On the other side of the spectrum, equity funds were the weekly winners as they attracted $4.8 billion in new money.
Equity-based ETFs attracted capital for the week, $5.3 billion in total, making it the segment’s third positive week of inflows out of four. iShares: Core S&P 500 (NYSEARCA:IVV) led all ETFs, raking in $5.6 billion on the week. The VanEck ETF: Semiconductors (NASDAQ: SMH) came in second place, pulling in $1.3 billion.
However, the SPDR S&P 500 ETF (NYSEARCA: SPY) and iShares: MSCI Kokusai (NYSEARCA: TOK) were the top two equity funds that saw the largest weekly capital outflows, with $3.9 billion and $3.8 billion respectively leaving the funds.
From a fixed income perspective, the space lost $4.3 billion on the week. The largest ETF retractors were the SPDR Bloomberg 1-3 Month T-Bill (NYSEARCA: BIL) and iShares: IBoxx $Investment Grade Corporates (NYSEARCA: LQD) which lost $1.9 billion and $1.6 billion, respectively.
The main leaders in fixed income ETF inflow were the iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF)attracting $607 million, and the iShares ETF: 20+ treasury Bond ETF (NASDAQ: TLT)collecting $366 million.
On a broader ETF front, data shows that 60% of the assets in the US $7,000,000,000 ETF market are in funds with expense ratios below 0.10%.