Long-term mutual funds and ETPs experienced net deposits of US$41.2 billion in July, down from the US$62.6 billion in net new flows seen in June. Passive strategies led net flows among long-term funds at US$40.1 billion (including US$24.3 billion to ETPs), while active funds saw only US$1.1 billion in net inflows.
Taxable Bond funds experienced the highest monthly net deposits among long-term funds at US$34.3 billion, a slight increase from June’s US$33.2 billion. Passive Taxable Bond funds (US$20.0 billion) had an advantage in net new flows over active Taxable Bond funds (US$14.3 billion) in July. Tax-Free Bond funds experienced minor inflows of US$2.9 billion in July.
Net new flows into International Equity funds fell to US$19.4 billion in July from US$28.6 billion in June. Domestic Equity funds experienced a greater downturn in July at US$15.4 billion in net redemptions, compared to outflows of US$2.6 billion in June.
Money Market funds saw a rebound in net deposits in July at US$10.8 billion from US$36.3 billion in net redemptions in June. The segment experienced inflows across both Taxable Money Market funds (US$9.0 billion) and Tax-Free Money Market funds (US$1.7 billion).