Investors turn to international equity funds in April

But bonds raise more funds

May 12, 2017 @ 1:50 pm

By John Waggoner

Stock investors sent their money to Paris in April — and London, Hong Kong and Brussels, according to Morningstar's most recent report on mutual fund and ETF flows.

International equity funds saw a net $21.1 billion in new money in April, while U.S. equities saw just $1.6 billion. U.S. foreign large blend ETFs and funds, which look for growth at a reasonable price, were the category du jour, taking in $12.1 billion.

International managers should probably save the champagne for Bastille Day, however: Just $1.8 billion of net new money went to actively managed funds and ETFs. The rest went to passive strategies. Biggest foreign gainer: Vanguard Total International Stock (VGTSX), which raked in $2.3 billion.

As has been the case for some time, bonds edged out equities for new money, despite an eight-year bull market and a 13.6% rally since the Nov. 8 election. Taxable bond funds and ETFs had a net inflow of $26.1 billion last month, bringing the total 12-month inflow to $270.5 billion. Stock funds and ETFs, in contrast, have seen just $65.7 billion in net new money.

And — stop us if you've heard this before — Vanguard led the pack for April inflows, as $25.1 billion flowed to Valley Forge, Pa. iShares took second place, with $23.7 billion. JPMorgan came in last, with a $9 billion net outflow.

The past 12 months, Vanguard has seen net inflows of $326.8 billion, which is a bit more than the gross domestic product of South Africa. iShares had the second-largest inflow for the past 12 months, at $163.2 billion — a bit less than Qatar.

The difference between flows to actively managed funds and passively managed funds is gargantuan. Passively managed long-term funds and ETFs have seen $641.3 billion in net new money the past 12 months, which is roughly the size of Saudi Arabia's GDP. Passively managed sector funds add another $30.4 billion. Over the same time, actively managed funds have watched $264.6 billion flee.

Bragging rights for April goes to iShares Core S&P 500 (IVV), which saw $6.3 billion in net new money. SPDR S&P 500 (SPY) finished last for the money, as net $5.5 billion fled.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What's the first thing advisers should do when they get home from a conference?

After attending a financial services conference, advisers can be overwhelmed by options, choices and tools. What's the first thing they should do when they get back to their office?

Latest news & opinion

Speculation mounts on whether others will follow UBS' latest move to prevent brokers from leaving

UBS brokers must sign a 12-month non-solicit agreement if they want their 2017 bonuses.

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.

Galvin's DOL fiduciary rule enforcement triggers industry plea for court decision

Plaintiffs warned the Fifth Circuit that Massachusetts' move against Scottrade signaled that the partially implemented regulation can raise costs for financial firms.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print