Passive funds see significant deposits - US Monthly Fund Highlights - February 2019

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Long-term active funds continued to experience positive net new flows in February (US$11.6 billion) though at a lower level than January (US$12.8 billion).

Net deposits increased substantially for passive funds in February, growing to US$42.3 billion from US$19.8 billion in January. Mutual funds continued to experience the highest inflows at US$21.8 billion but exchange-traded funds saw a significant rebound from the previous month. Passive ETF inflows totalled US$20.4 billion in February after experiencing outflows of US$5.4 billion.

Fixed-income groupings saw the widest lead in aggregate year-to-date net deposits across both active and passive funds. Taxable Bond fund flows totalled US$67.8 billion in the YTD period, followed by US$18.6 billion into Tax-Free Bond funds.

Money Market funds saw net inflows increase dramatically in February, growing to US$37.5 billion from US$1.5 billion in January. Prime Money Market funds saw the greatest inflows at US$23.5 billion, while Taxable funds saw the greatest rebound, garnering inflows of US$16.6 billion in February against outflows of US$24.4 billion in January.