Long-term mutual funds and ETPs experienced net deposits of US$79.4 billion in February, an increase from the US$58 billion in net new flows seen in January. Passive strategies continued to lead demand among long-term funds with inflows of US$65.6 billion (including US$43.5 billion to ETPs). Active long-term funds reversed the aggregate outflows they had experienced in recent months with net deposits of US$13.8 billion in February, compared to US$13.8 billion in net redemptions in January.
Taxable Bonds experienced the highest net deposits among long-term funds at US$37.6 billion. Taxable Bond funds experienced net inflows across both passive (US$17.8 billion) and active ($19.8 billion) funds. Tax-Free Bond funds experienced minor inflows of US$2.1 billion in February.
Domestic Equity led among Equity funds in February and saw a significant improvement in net deposits at US$24.6 billion, compared to $5.4 billion in January. International Equity funds experienced a similar level of net deposits as last month, seeing US$15.1 billion in February and $15.3 billion in January. Among Domestic Equity funds, outflows were concentrated in active products ($9.1 billion), while International Equity funds saw net inflows across both passive (US$14.2 billion) and active (US$864 million) segments.
Money Market funds continued to experience net redemptions in February, but at a more favorable level of US$2.0 billion compared to US$44.6 billion of outflows in January. Among Taxable Money Market funds, prime funds led inflows at US$9.9 billion, while treasury and government funds saw outflows of US$4.5 billion and US$7 billion, respectively.