Investor Flows – Good News is Bad News

Markets sold off on Friday following the release of better-than-expected employment data. Job market strength is bad for investors because it means the Fed will continue hiking rates, or so the market believes. Flows for the past 30 days remain skewed toward US government funds as investors flee for safety but it’s not entirely risk-off. Large/mid-cap and broad equity funds together make up an equivalent share to US government funds.   

US Government funds continue to see solid flows totaling more than $18 billion on a rolling one-month basis. 

Inflation-friendly ETFs remain unappealing as TIPS fall out of favor. 

Corporate bond ETFs had decent in-flows last week with $330 million to Investment Grade and $1.60 billion to High Yield.

TABLES

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