Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
X •  LinkedIn

  Retail Investors Have Favored Bond & Hybrid Funds Since The Start Of 2009
Posted Under: Conceptual Investing
Supporting Image for Blog Post

View from the Observation Deck 

  1. From 1/09 through 8/16, investors funneled a net $1.08 trillion into open-end Bond mutual funds and $206.59 billion into Hybrid funds.
  2. Over the same period, investors liquidated a net $332.66 billion and $1.18 trillion from Equity and Money Market funds, respectively.
  3. The bull market in equities, which began in March 2009 and is still in progress, has not compelled retail investors in the aggregate to commit net new capital to Equity funds.
  4. While we acknowledge that some of the investors liquidating capital from Equity funds may have done so with the intent to shift some of it to equity-based or other types of exchange-traded funds, it is still a surprising phenomenon, in our opinion.
  5. Keep in mind, despite the $332 .66 billion in net outflows from Equity funds, total assets invested in Equity funds increased from $3.66 trillion at the end of 2008 to $8.52 trillion at the close of August 2016 (not shown in chart), according to data from the Investment Company Institute. The difference between the two figures stems from gains generated by the global equities markets.
  6. The most interesting year in the period was 2013, in our opinion. In 2013, the yield on the 10-year Treasury note rose from 1.76% to 3.03%, or an increase of 127 basis points, according to Bloomberg. In response to the rising rate climate, Bond fund investors liquidated a net $71.17 billion. Ironically, investors poured a net $159.55 billion into Equity funds.

This chart is for illustrative purposes only.

To Download a PDF of this post, please click here.

Posted on Thursday, October 20, 2016 @ 2:00 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

Sector Performance Via Market Capitalization
Health Care Often Used As A Wedge Issue In Presidential Elections
Some Insight Into The S&P 500 Index Dividend Payout
Tis the Season for Earnings
One Measure Of Corporate Cash Holdings Reached A Record High in Q2’16
S&P 500 Index Dividend-Payers Still Distributing Lots Of Cash To Shareholders
The Growth In State Tax Collections May Be Better Than Some Think
The Recovery In Financials Could Include Rising Dividend Payouts
What The Slowdown In Global Growth Looks Like
Technology Stocks Have Delivered Strong Returns In The Current Bull Market
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.