FUNDFLOWS INSIGHT REPORT

THOMSON REUTERS LIPPER RESEARCH SERIES

MAY 31, 2017

Conventional Funds Take in Net New Money for May Conventional Funds Take in Net New Money for
For the first month in three mutual fund investors were
net purchasers of fund assets, injecting a net $32.6
May
billion into the conventional funds business. Fixed
income funds (+$24.5 billion) and money market funds EXECUTIVE SUMMARY
(+$8.5 billion) witnessed net inflows for May, while
for the third consecutive month investors were net
Most of the U.S. broad-based indices managed to finish the month of May on
redeemers of stock & mixed-asset funds (-$0.4 billion). the plus side, despite the political drama occurring in our nations capital; the
NASDAQ Composite posted the strongest return (+2.50%), and the Russell 2000
For the first month in twenty-eight Thomson Reuters
Lippers U.S. Diversified Equity (USDE) Funds macro- Price Only Index posted the only negative return (-2.16%). Equity markets rallied
classification witnessed net inflows, taking in $350 at the beginning of May as investors learned of a better-than-expected nonfarm
million for May. payrolls report for April and with pundits already pricing in an Emmanuel Macron
For the sixteenth consecutive month authorized win in the then-upcoming final round of the French presidential election. The Labor
participants (APs) were net purchasers of exchange- Department reported the U.S. created 211,000 new jobs for April, beating the
traded funds (ETFs), injecting $31.6 billion for May. APs
injected a net $20.8 billion into stock & mixed-asset
190,000 expected by analysts. Investors embraced growth and tech playsbidding
ETFs and were net purchasers of bond ETFs, injecting a up energy, telecom, and materials issuesbut remained focused on political risks
net $10.8 billion. from both Washington and Paris.
Perhaps because yields declined at the long end of While the Dow Jones Industrial Average and the S&P 500 Index both suffered
the curve, APs padded the coffers of Corporate Debt
BBB-Rated ETFs (+$3.3 billion net) and Core Bond ETFs their first weekly decline in nearly a month as investors reviewed the political
(+$1.9 billion net). environment when President Donald Trump fired FBI Director James Comey,
the NASDAQ Composite witnessed its fourth straight week of gains as investors
TABLE 1 ESTIMATED NET FLOWS BY MAJOR learned that April retail sales rose 0.4% (coming in slightly worse than the 0.5%
FUND TYPES, MAY 2017 VERSUS analysts had expected). Toward month-end oil prices took it on the chin after OPEC
APRIL ($BIL) and other oil producers didnt make the expected broad, sweeping cuts to global
MAY APRIL crude oil production. Stocks finished the month with a whimper as banks warned of
Stock & Mixed Equity Funds -0.4 -28.9 a trading slump, weighing on blue chips even as the Chicago PMI rose to a two-
Bond Funds 24.5 20.4 and-half-year high for May.
Money Market Funds 8.5 -23.3 For the first month in three investors were net purchasers of fund assets, injecting
TOTAL 32.6 -31.8 $32.6 billion into the conventional funds business (excluding ETFs) for May. For
the third consecutive month stock & mixed-asset funds witnessed net outflows,
Source: Thomson Reuters Lipper
Note: Columns may not sum because of rounding
however handing back just $0.4 billion for May, while for the first month in five
money market funds witnessed net inflows, taking in $8.5 billion. For the fifth
month in a row fund investors were net purchasers of fixed
TABLE 2 ESTIMATED NET FLOWS OF MAJOR income funds, injecting $24.5 billion into the macro-group.
EQUITY FUND TYPES, MAY 2017
VERSUS APRIL ($BIL)

MAY APRIL
USDE Funds 0.4 -34.5
Sector Equity Funds -2.0 -0.8
World Equity Funds 7.8 6.5
Mixed-Asset Funds -6.1 0.7
Alternatives Funds -0.5 -0.7
Authored by:
TOTAL -0.4 -28.9
TOM ROSEEN
Source: Thomson Reuters Lipper HEAD OF RESEARCH SERVICES
Note: Columns may not sum because of rounding THOMSON REUTERS LIPPER

1
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY FUNDS
UNITED STATES DIVERSIFIED EQUITY ESTIMATED NET FLOWS OF 4X3-MATRIX USDE FUNDS, MAY 2017
TABLE 3
(USDE) FUNDS VERSUS APRIL ($BIL)
For the first month in 28 USDE Funds witnessed net
inflows but took in only $350 million for May. Investors VALUE CORE GROWTH MAY APRIL
warmed to growth-oriented funds (+$11.7 billion) and
Large-Cap -8.1 -3.2 6.4 -4.9 -11.2
multi-cap funds (+$11.4 billion) during the month and
Multi-cap -1.2 6.9 5.7 11.4 -16.8
turned their backs on large-cap funds (-$4.9 billion)
and value-oriented issues (-$10.2 billion). Lippers Mid-Cap -0.5 -0.7 0.0 -1.2 -1.7
Large-Cap Value Funds classification (-$8.1 billion) Small-Cap -0.5 -1.5 -0.3 -2.4 -2.2
suffered the largest net redemptions of all the 4x3- TOTAL -10.2 1.5 11.7 3.0 -32.0
matrix classifications, bettered by Large-Cap Core
Source: Thomson Reuters Lipper
Funds (-$3.2 billion). Multi-Cap Core Funds (+$6.9 Note: Columns and rows may not sum because of rounding
billion), Large-Cap Growth Funds (+$6.4 billion), and
Multi-Cap Growth Funds (+$5.7 billion) witnessed the
largest net inflows of the subgroup for May. For the ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS, MAY
third month running the non-4x3-matrix subgroup TABLE 4
2017 VERSUS APRIL ($BIL)
experienced net redemptions (-$2.7 billion), with Equity
Leverage Funds suffering the only net redemptions
(-$2.8 billion) of the subgroup and S&P 500 Index MAY APRIL
Funds just managing to stay in the black (+$0.1 billion). Equity Leverage Funds 0.0 0.1
Year to date the USDE Funds macro-classification Equity Income Funds -2.8 -1.9
witnessed $57.1 billion of net redemptions. Specialty Diversified Equity Funds 0.0 0.1
S&P 500 Index Funds 0.1 -0.8
TOTAL -2.7 -2.6

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

2
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY FUNDS
WORLD EQUITY FUNDS ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY
TABLE 5
While Chinese stocks tumbled early in the month on FUNDS, MAY 2017 VERSUS APRIL ($BIL)
worries that the countrys clampdown on speculators
and borrowing might curb demand for metals, VALUE CORE GROWTH MAY APRIL
European stocks finished at a 21-month high ahead
Large-Cap 0.0 -0.2 -0.1 -0.3 0.8
of the French presidential election. For the second
Multi-Cap -0.3 -1.4 0.2 -1.5 -0.5
consecutive month investors were net purchasers of
the World Equity Funds macro-classification, injecting Small-/Mid-Cap (No Style) 0.5 0.5 0.3
$7.8 billion for May. For the sixth month in a row TOTAL (LARGE & MULTI) -0.2 -1.0 0.0 -1.2 0.7
institutional world equity funds (including variable
Source: Thomson Reuters Lipper
insurance products) witnessed net inflows (+$10.0 Note: Columns and rows may not sum because of rounding
billion) and for the first month in three no-load funds
experienced net purchases (+$1.2 billion), while loaded
funds continued to suffer net redemptions$3.4
billion. For the thirteenth month in 14 Lippers Global
TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED EQUITY
Diversified Equity Funds subgroup (-$1.2 billion) FUNDS, MAY 2017 VERSUS APRIL ($BIL)
witnessed net outflows. However, for the sixth
consecutive month the International Diversified Equity
Funds subgroup experienced net inflowstaking in VALUE CORE GROWTH MAY APRIL
a little more than $6.6 billion for May. International Large-Cap 0.0 1.0 -0.8 0.2 -0.4
Multi-Cap Core Funds (+$5.6 billion) remained at the
Multi-Cap 0.2 5.6 -0.1 5.6 4.3
top of the World Equity Funds classifications. Once
Small-/Mid-Cap 0.0 0.2 0.6 0.8 0.4
again Emerging Markets Funds, taking in $3.2 billion,
TOTAL 0.1 6.8 -0.3 6.6 4.3
was in the runner-up position for the month, followed
by International Large-Cap Core Funds (+$1.0 billion).
Source: Thomson Reuters Lipper
At the bottom of the pile Global Multi-Cap Core Funds Note: Columns and rows may not sum because of rounding
witnessed the largest net redemptions (-$1.4 billion),
bettered slightly by International Large-Cap Growth
Funds (-$0.8 billion). Year to date World Equity Funds
attracted a net $19.4 billion, attracting the largest net
inflows of the five broad-based equity groups. TABLE 7 ESTIMATED NET FLOWS OF REMAINING WORLD EQUITY FUND
CLASSIFICATIONS, MAY 2017 VERSUS APRIL ($BIL)

MAY APRIL
China Region Funds 0.0 0.0
Emerging Markets Funds 3.2 1.6
European Region Funds 0.3 0.0
Global Equity Income Funds -0.6 -0.3
India Region Funds 0.1 0.1
International Equity Income Funds 0.1 0.1
Japanese Funds -0.7 0.1
Latin American Funds 0.0 0.0
Pacific Region Funds 0.0 0.0
Pacific ex-Japan Funds 0.0 -0.1
TOTAL 2.4 1.5

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

3
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY FUNDS
SECTOR EQUITY FUNDS ESTIMATED NET FLOWS OF SECTOR EQUITY FUNDS, MAY 2017
TABLE 8 VERSUS APRIL ($BIL)
Despite a run in technology- and infrastructure-related
issues, investors continued to shun the Sector Equity
Funds macro-classification. For the twenty-second MAY APRIL
consecutive month investors were net redeemers of Precious Metals Equity Funds 0.0 0.0
Sector Equity Funds, withdrawing $2.0 billion for
Basic Materials Funds -0.1 0.0
May. The Commodities General Funds classification
Consumer Goods Funds -0.1 0.0
suffered the worst net outflows of the group, handing
back some $485 million, bettered somewhat by Global Commodities Energy Funds 0.0 0.0
Health/Biotechnology Funds (-$440 million). The Commodities General Funds -0.5 0.3
slight rise in infrastructure and select technology issues Commodities Specialty Funds 0.0 0.0
during the month pushed Global Infrastructure Funds Consumer Services Funds 0.0 0.0
(+$411 million) to the top of the charts, attracting the Energy MLP Funds 0.0 0.1
largest net inflows of the group. Taking the number- Financial Services Funds -0.3 -0.3
two and -three positions, Science & Technology Funds
Global Financial Services Funds 0.0 0.0
attracted a net $362 million and Global Science &
Global Health/Biotechnology Funds -0.4 -0.3
Technology Funds brought in $352 million. Of the 24
Lipper classifications in the Sector Equity Funds macro- Global Infrastructure Funds 0.4 0.1
classification 12 suffered net redemptions for May. Year Global Natural Resources Funds -0.4 -0.4
to date the macro-classification handed back slightly Global Real Estate Funds 0.2 -0.1
less than $7.4 billion net. Global Science/Technology Funds 0.4 0.2
Health/Biotechnology Funds -0.4 -0.3
Industrials Funds 0.0 -0.1
International Real Estate Funds -0.1 0.1
Natural Resources Funds -0.3 -0.1
Real Estate Funds -0.4 -0.2
Specialty/Miscellaneous Funds 0.0 0.2
Science &Technology Funds 0.4 0.1
Telecommunication Funds -0.1 0.0
Utility Funds -0.2 -0.1
TOTAL -2.0 -0.8

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

4
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY FUNDS
TABLE 9 ESTIMATED NET FLOWS OF LIFECYCLE AND LIFESTAGE FUNDS,
MIXED-ASSET FUNDS MAY 2017 VERSUS APRIL ($BIL)
For the first month in five the Mixed-Asset Funds
macro-classification witnessed net outflows, handing
back $6.1 billion for May. Convertible Securities Funds MAY APRIL
suffered net redemptions of $124 million, while Flexible Mixed Asset Target 2010 Funds -0.3 -0.3
Portfolio Funds (-$472 million) also witnessed net Mixed Asset Target 2015 Funds -0.3 -0.4
outflows. Staying on track, the mixed-asset target Mixed Asset Target 2020 Funds 0.3 -0.1
date funds subgroup experienced net inflows, taking in Mixed Asset Target 2025 Funds 1.2 0.9
approximately $7.2 billion for May, while the primarily Mixed Asset Target 2030 Funds 1.3 0.8
broker-recommended mixed-asset target allocation Mixed Asset Target 2035 Funds 1.1 0.9
funds subgroupfor the thirteenth consecutive Mixed Asset Target 2040 Funds 1.2 0.7
monthwitnessed net outflows, handing back $12.7 Mixed Asset Target 2045 Funds 0.9 0.8
billion (their largest monthly net outflows since
Mixed Asset Target 2050 Funds 0.9 0.8
October 2008). Six of the sixteen classifications in the
Mixed Asset Target 2055+ Funds 0.8 0.7
subgroups suffered net redemptions for the month,
Mixed Asset Target Today Funds 0.2 0.1
with Mixed-Asset Target Allocation Growth Funds
Mixed Asset Target Alloc Aggres Funds -0.3 -0.2
(-$8.3 billion) suffering the largest net redemptions,
bettered by Mixed-Asset Target Allocation Moderate Mixed Asset Target Alloc Conserv Funds -1.0 -0.4
Funds (-$3.2 billion) and Mixed-Asset Target Allocation Mixed Asset Target Alloc Growth Funds -8.3 0.0
Conservative Funds (-$1.0 billion). Mixed-Asset Target Mixed Asset Target Alloc Moderate Funds -3.2 -2.3
2030 Funds (+$1.3 billion) attracted the largest net Retirement Income 0.1 0.1
draw of the classifications, followed by Mixed-Asset TOTAL -5.5 2.1
Target 2025 Funds and Mixed-Asset Target 2040
Source: Thomson Reuters Lipper
Fundstaking in $1.2 billion each. Year to date the
Note: Columns may not sum because of rounding
Mixed-Asset Funds macro-classification attracted a net
$7.1 billion.

TABLE 10 ESTIMATED NET FLOWS OF ALTERNATIVES FUNDS, MAY 2017

ALTERNATIVES FUNDS VERSUS APRIL ($BIL)
For the second consecutive month the Alternatives
Funds macro-classification experienced net outflows MAY APRIL
(-$464 million) as the Alternative Global Macro Funds Absolute Return Funds -0.1 0.0
(-$377 billion), Alternative Managed Futures Funds Alternative Active Extension Funds -0.1 -0.3
(-$375 million), and Alternative Multi-Strategy Funds Alternative Equity Market Neutral Funds -0.1 0.0
(-$194 million) classifications handed back the largest Alternative Event Driven Funds 0.1 -0.1
net amounts. Alternative Long/Short Equity Funds Alternative Global Macro Funds -0.4 -1.1
(+$745 billion) and Dedicated Short-Bias Funds (+$202 Alternative Long/Short Equity Funds 0.7 0.2
million) witnessed the largest net inflows. Year to date Alternative Managed Futures Funds -0.4 -0.2
the Alternatives Funds macro-classification handed back Alternative Multi-Strategy Funds -0.2 1.0
some $3.8 billion net. Alternative Other Funds -0.2 -0.4
Dedicated Short Bias Funds 0.2 0.2
TOTAL -0.5 -0.7

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

5
 FUNDMARKET INSIGHT REPORT MAY 2017

FIXED INCOME FUNDS

FIXED INCOME FUNDS ESTIMATED NET FLOWS OF MAJOR FIXED INCOME FUND TYPES,
TABLE 11
Perhaps as the result of Treasury yields once again MAY 2017 VERSUS APRIL ($BIL)
shifting downward at all maturities of the curve
greater than two years, for the fifth consecutive month
investors were net purchasers of fixed income funds, TAXABLE MUNICIPAL MAY APRIL
injecting a net $24.5 billion for May. On the taxable Long-Term Bond 6.3 1.3 7.6 11.2
bond (nonmoney market) funds side (+$21.4 billion) Short & Intermediate 15.1 1.7 16.8 9.2
20 of Lippers 28 classifications witnessed net inflows, Money Market 7.2 1.3 8.5 -23.3
while on the tax-exempt side (+$3.1 billion) 10 of the TOTAL 28.6 4.4 33.0 -2.9
20 classifications in the municipal bond funds universe
saw net inflows. Investors padded the coffers of Core Source: Thomson Reuters Lipper
Bond Funds (+$6.5 billion), Multi-Sector Income Funds Note: Columns and rows may not sum because of rounding

(+$5.0 billion), and Ultra-Short Obligation Funds

(+$2.9 billion). High Yield Funds witnessed the largest
net redemptions of the group, handing back $2.9
billion for May, bettered by GNMA Funds (-$1.3 billion),
U.S. Mortgage Funds (-$340 million), and Corporate
Debt BBB-Rated Funds (-$304 million). On the
municipal bond funds side Short Municipal Debt Funds
(+$874 million) witnessed the largest net inflows, while
New York Municipal Debt Funds (-$69 million) suffered
the largest net redemptions of the subgroup. Year to
date the Fixed Income Funds macro-classification took
in a net $122.0 billion.

MONEY MARKET FUNDS

For the first month in five investors were net purchasers
of the Money Market Funds macro-classification,
injecting $8.5 billion for May. On the taxable side
(+$7.2 billion) just two of the six Lipper classifications
witnessed net inflows: Institutional U.S. Treasury Money
Market Funds witnessed the largest net inflows of the
group, taking in $9.1 billion, followed by Institutional
Money Market Funds (+$5.5 billion). U.S. Government
Money Market Funds experienced the largest net
redemptions for the month (-$3.7 billion), bettered by
Institutional U.S. Government Money Market Funds
(-$1.7 billion). On the tax-exempt side (+$1.3 billion)
two of the five classifications (Other States Tax-Exempt
Money Market Funds [-$329 million] and New York Tax-
Exempt Money Market Funds [-$18 million]) witnessed
net outflows. Tax-Exempt Money Market Funds
(+$1.0 billion) witnessed the largest net inflows of the
subgroup. Year to date Money Market Funds handed
back a little under $86.3 billion net.

6
 FUNDFLOWS INSIGHT REPORT
THOMSON REUTERS LIPPER RESEARCH SERIES

MAY 31, 2017

APs Gravitate to World Equity TABLE 1 ESTIMATED NET FLOWS BY MAJOR

ETF TYPES, MAY 2017 VERSUS APRIL
($BIL)
ETFs in May
MAY APRIL
Stock & Mixed Equity ETFs 20.8 24.0
Bond ETFs 10.8 11.0
ETF EXECUTIVE SUMMARY
TOTAL 31.6 35.0
Markets started the month of May with a roar as investors cheered a better-than-
expected April nonfarm payrolls report, bidding up tech- and growth-oriented Source: Thomson Reuters Lipper
issues but remaining focused on political risks from both Washington and Paris, Note: Columns may not sum because of rounding
despite most pundits believing Emmanuel Macron was a fairly sure bet in the
final round of the French presidential election. But, the DJIA and S&P 500
stumbled as investors evaluated the political environment after President Trump ESTIMATED NET FLOWS OF MAJOR
TABLE 2
fired FBI Director James Comey. Mid-month, all the major U.S. indices suffered EQUITY ETF TYPES, MAY 2017
losses, sparked by the political drama from the White House after a Washington VERSUS APRIL ($BIL)
Post article indicated a current White House official was a person of interest in
the Russia probe. Despite investors cheering the fundamental strength of the Q1
MAY APRIL
2017 earnings, some investors continued to question Trumps ability to deliver on
USDE ETFs 0.1 9.2
his economic stimulus package amid the ongoing investigations. Toward month-
end investors pushed the S&P 500 and the NASDAQ into record territory once Sector Equity ETFs -2.6 0.6
again after learning that the U.S. GDP was revised up to 1.2% from 0.7%, in spite World Equity ETFs 22.8 13.6
of durable goods orders declining to a five-month low in April. A decline in near- Mixed-Asset ETFs 0.2 0.2
month oil prices and a 2.3% decline in existing-home sales for April weighed Alternative ETFs 0.3 0.5
on the market. While the Federal Reserves Beige Book indicated the economy TOTAL 20.8 24.0
was still growing at a moderate pace, which still supported a June rate hike, Source: Thomson Reuters Lipper
some pundits questioned whether the recent trend of soft economic data would Note: Columns may not sum because of rounding
support two additional rate hikes in 2017.

For the month of May Treasury yields rose at the short-end of the curve as
investors anticipated a June rate hike. Treasury yields of less than two years
witnessed increases for the month ranging between 1 bp and 18 bps, while
longer-dated yields declined, with the 30-year yield declining the most9 bps
to 2.87%. For May the dollar weakened against the euro (-2.95%) and the yen
(-1.69%) but gained against the pound (+0.09%). Commodities prices were
mixed for the month, with near-month gold prices rising 0.47% to close May at
$1,272.00/ounce and with front-month crude oil prices falling 2.05% to close the
month at $48.32/barrel.

Nevertheless, for the sixteenth consecutive month ETFs attracted net new money,
taking in $31.6 billion for May. For the twelfth consecutive month authorized
participants (APs) were net purchasers of stock & mixed-asset ETFsinjecting
$20.8 billion for May. And for the twenty-third month in a row they were net
purchasers of bond ETFsinjecting $10.8 billion. APs were net purchasers of four Authored by:
of the five equity-based ETF macro-classifications: World Equity ETFs (+$22.8 TOM ROSEEN
billion), Alternatives ETFs (+$258 million), Mixed-Asset ETFs (+$226 million), HEAD OF RESEARCH SERVICES
and USDE ETFs (+$116 million), while being net redeemers of Sector Equity ETFs THOMSON REUTERS LIPPER
(-$2.6 billion).

7
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY ETFs
UNITED STATES DIVERSIFIED EQUITY ESTIMATED NET FLOWS OF USDE 4X3-MATRIX ETFs, MAY 2017
TABLE 3
(USDE) ETFs VERSUS APRIL ($MIL)
For the twelfth consecutive month the USDE ETFs
macro-classification experienced net inflows, however VALUE CORE GROWTH MAY APRIL
attracting just $116 million for May (its smallest
Large-Cap 652.9 220.8 2,447.0 3,320.6 3,833.0
monthly net inflows since May 2016). Lippers broad
Multi-Cap -9.4 2,351.8 61.9 2,404.3 2,339.5
4x3-matrix subgroup experienced net inflows for the
fifteenth consecutive month, attracting a little more Mid-Cap 40.5 -159.3 314.3 195.5 52.9
than $943 million for the month, with Large-Cap Small-Cap -832.1 -4,227.9 82.8 -4,977.3 818.6
Growth ETFs (+$2.4 billion) witnessing the largest TOTAL -148.2 -1,814.6 2,905.9 943.1 7,044.1
net inflows of the macro-classification. For the third
Source: Thomson Reuters Lipper
month in a row mid-cap ETFs (+$196 million) took in Note: Columns and rows may not sum because of rounding
the smallest net-flows amount of the four capitalization
groups, while large-cap funds (+$3.3 billion) were at
the top of the capitalization breakouts. Core-oriented
ETFs (-$1.8 billion, Aprils flows leader) suffered the
largest net outflows of the valuation subgroups for ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS, MAY
TABLE 4
the month, while their growth-oriented counterparts 2017 VERSUS APRIL ($MIL)
attracted $2.9 billion and value-oriented ETFs handed
back $148 million. Small-Cap Core ETFs and Small-
MAY APRIL
Cap Value ETFs witnessed the largest net outflows of
Equity Leverage ETFs 425.2 92.4
the subgroup for the month, handing back $4.2 billion
and $0.8 billion, respectively. Outside the 4x3-matrix Equity Income ETFs -130.6 385.1
classifications S&P 500 Index ETFs witnessed the Specialty Diversified ETFs -2.0 2.0
largest net outflows (-$1.1 billion). Vanguard 500 S&P 500 Index ETFs -1,119.3 1,638.2
Index ETF (VOO) individually witnessed the largest net TOTAL -826.6 2,117.6
inflows (+$1.9 billion), while iShares Russell 2000 ETF
(IWM) witnessed the largest individual net outflows Source: Thomson Reuters Lipper
(-$4.9 billion). Year to date USDE ETFs attracted some Note: Columns may not sum because of rounding

$56.8 billion net.

8
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY ETFs
WORLD EQUITY ETFs ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY ETFs,
TABLE 5
For the sixth month in a row APs were net purchasers MAY 2017 VERSUS APRIL ($MIL)
of World Equity ETFs, injecting $22.8 billion for May
(the macro-classifications largest monthly net inflows VALUE CORE GROWTH MAY APRIL
since April 2015). APsfor the eighth month running
Large-Cap 4.7 148.8 47.9 201.4 -37.6
padded the coffers of International Diversified Equity
ETFs, purchasing a net $10.9 billion for May, and for Multi-Cap 557.5 -4.3 553.2 276.4

the third consecutive month they were net purchasers Small-/Mid-Cap (No Style) 0.1 0.1 -0.3
of the Global Diversified Equity ETFs subgroup (+$755 TOTAL (LARGE & MULTI) 4.7 706.3 47.9 754.7 238.5
million for May). For the fifth month in a row APs were
Source: Thomson Reuters Lipper
also net purchasers of the non-3x3-matrix subgroup, Note: Columns and rows may not sum because of rounding
injecting a net $11.1 billion. The International Multi-Cap
Core ETFs classification, attracting a net $8.9 billion,
remained at the top of the charts for the month, while
European Region ETFs (+$5.2 billion) and Emerging
TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED
Markets ETFs (+$4.6 billion) took the number-two and EQUITY ETFs, MAY 2017 VERSUS APRIL ($MIL)
-three spots on the list. Once again, Japanese ETFs
experienced the largest net redemptions of the macro-
classification, handing back $40 million for the month. VALUE CORE GROWTH MAY APRIL
iShares MSCI EAFE ETF (EFA), with net inflows of $4.0 Large-Cap 186.2 91.1 46.5 323.8 -16.1
billion for May, attracted the most individual interest
Multi-Cap 215.4 8891.3 392.7 9,499.4 6,836.9
in the macro-classification. iShares MSCI Japan
Small-/Mid-Cap -5.2 162.3 909.5 1,066.6 202.5
ETF (EWJ) handed back the largest individual net
redemptions (-$197 million). Year to date World Equity TOTAL 396.4 9,144.7 1,348.8 10,889.8 7,023.3
Funds took in some $69.3 billion net.
Source: Thomson Reuters Lipper
Note: Columns and rows may not sum because of rounding

TABLE 7 ESTIMATED NET FLOWS OF REMAINING WORLD EQUITY ETF

CLASSIFICATIONS, MAY 2017 VERSUS APRIL ($MIL)

MAY APRIL
China Region ETFs 62.6 131.0
Emerging Markets ETFs 4,592.0 2,851.2
European Region ETFs 5,245.2 2,998.9
Global Equity Income ETFs 45.0 46.9
India Region ETFs 130.3 203.9
International Equity Income ETFs 627.2 291.3
Japanese ETFs -40.0 -298.8
Latin American ETFs 105.7 -140.0
Pacific Region ETFs 214.3 59.0
Pacific ex-Japan ETFs 150.3 174.6
TOTAL 11,132.6 6,317.8

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

9
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY ETFs
SECTOR EQUITY ETFs TABLE 8 ESTIMATED NET FLOWS OF SECTOR EQUITY ETFs,
For the first month in seven Sector Equity ETFs MAY 2017 VERSUS APRIL ($MIL)
witnessed net outflowshanding back some $2.6
billion for May, with 16 of Lippers 27 Sector Equity ETF MAY APRIL
classifications witnessing net outflows for the month. Precious Metals Equity ETFs -1,677.9 -1,523.5
Science & Technology ETFs (+$937 million), Consumer
Basic Materials ETFs -523.3 284.1
Services ETFs (+$346 million), and Specialty/
Consumer Goods ETFs -394.0 148.4
Miscellaneous ETFs (+$323 million) were at the top
of the charts for the month, while Precious Metals Commodities Agriculture ETFs -2.0 5.8
Equity ETFs (-$1.7 billion), Financial Services ETFs Commodities Energy ETFs -105.1 -127.4
(-$1.3 billion), and Basic Materials ETFs (-$523 million) Commodities General ETFs -329.3 -129.9
suffered the largest net redemptions. Consumer Commodities Base Metals ETFs -51.1 -0.3
Discretionary Select Sector SPDR Fund (XLY), taking Commodities Precious Metals ETFs -138.7 1,112.1
in a net $254 million, attracted the largest individual Commodities Specialty ETFs 68.2 -90.2
draw for May. At the bottom of the individual ETF pile
Consumer Services ETFs 346.2 -191.2
for the second month in a row was VanEck Vectors
Energy MLP ETFs 264.4 170.6
Gold Miners ETF (GDX), handing back a net $1.4
billion for the month. Year to date Sector Equity ETFs Financial Services ETFs -1,329.3 -837.5
attracted a net $15.8 billion. Global Financial Services ETFs 238.3 18.1
Global Health/Biotechnology ETFs -27.2 -17.2
Global Infrastructure ETFs -59.6 54.2
Global Natural Resources ETFs 147.0 125.2
Global Real Estate ETFs 18.2 64.0
Global Science/Technology ETFs 234.1 76.2
Health/Biotechnology ETFs -94.2 19.2
Industrials ETFs 171.0 420.3
International Real Estate ETFs 69.2 191.5
Natural Resources ETFs -2.1 -561.9
Real Estate ETFs -317.3 109.6
Specialty/Miscellaneous ETFs 322.8 114.1
Science &Technology ETFs 937.0 646.4
Telecommunication ETFs -108.0 -24.9
Utility ETFs -251.6 569.4
TOTAL -2,594.3 625.0

Source: Thomson Reuters Lipper

Note: Columns may not sum because of rounding

10
 FUNDMARKET INSIGHT REPORT MAY 2017

EQUITY ETFs
ALTERNATIVES ETFs ESTIMATED NET FLOWS OF ALTERNATIVES ETFs, MAY 2017
For the fifth month in a row Alternatives ETFs TABLE 9
VERSUS APRIL ($MIL)
witnessed net inflows, taking in $258 million for May.
As a result of continued geopolitical concerns, APs MAY APRIL
were net purchasers of Dedicated Short-Bias ETFs Absolute Return ETFs -4.5 5.8
(+$195 million), with Alternative Event-Driven ETFs Alternative Active Extension 16.3 26.5
and Alternative Active Extension ETFs experiencing the Alternative Equity Market Neutral ETFs 0.0 0.8
next largest net inflows of the group, taking in some Alternative Event Driven ETFs 33.5 15.0
$34 million and $16 million, respectively. Absolute
Alternative Global Macro ETFs 2.5 2.7
Return ETFs (-$5 million) suffered the largest net
Alternative Long/Short Equity ETFs 15.0 87.6
redemptions of the group. ProShares Short VIX Short-
Term Futures ETF (SVXY), taking in some $150 million, Alternative Managed Futures ETFs 4.1 1.6
witnessed the largest individual net inflows of the Alternative Multi-Strategy ETFs -3.3 -19.2
macro-classification, while VelocityShares 3x Inverse Dedicated Short Bias ETFs 194.6 343.5
Natural Gas ETN (DGAZ) handed back $126 million TOTAL 258.2 464.4
and suffered the largest individual net withdrawals.
Alternatives ETFs took in a net $1.8 billion year to date. Source: Thomson Reuters Lipper
Note: Columns may not sum because of rounding

11
 FUNDMARKET INSIGHT REPORT MAY 2017

FIXED INCOME ETFs

FIXED INCOME ETFs TABLE 10 ESTIMATED NET FLOWS OF MAJOR FIXED INCOME ETF TYPES,
For the twenty-third month in a row bond ETFs MAY 2017 VERSUS APRIL ($MIL)
(+$10.8 billion for May) witnessed net inflows. On the
taxable bond ETFs side (+$10.5 billion) 19 of the 28 TAXABLE MUNICIPAL MAY APRIL
Lipper classifications attracted net new money for the Long-Term Bond 5,948.9 240.4 6,189.3 8,598.0
month, while the tax-exempt offerings (+$318 million) Short & Intermediate 4,542.6 77.2 4,619.8 2,360.3
reported net inflows into all seven classifications. On TOTAL 10,491.5 317.6 10,809.1 10,958.3
the taxable side net flows into Corporate Debt BBB-
Rated ETFs (+$3.3 billion) and Core Bond ETFs (+$1.9 Source: Thomson Reuters Lipper
Note: Columns and rows may not sum because of rounding
billion) beat those to the other classifications. High
Yield ETFs (-$797 million) and Alternative Currency
Strategies ETFs (-$240 million) suffered the largest net
redemptions of the group. iShares iBoxx $ Investment
Grade Corporate Bond ETF (LQD), with net inflows
of $2.2 billion, attracted the largest individual net
inflows of the group, while iShares iBoxx $ High Yield
Corporate Bond ETF (HYG), handing back some
$1.4 billion for May, suffered the largest individual
net redemptions. On the tax-exempt side General &
Insured Municipal Debt ETFs (+$207 million) attracted
the largest net inflows, while New York Municipal
Debt ETFs experienced the smallest net inflows of the
subgroup (+$6 million). Year to date the Fixed Income
ETFs macro-classification attracted a net $56.1 billion.

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