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FUNDFLOWS INSIGHT REPORT

THOMSON REUTERS LIPPER RESEARCH SERIES

NOVEMBER 30, 2017

APs Continue to Embrace Equities, While Conventional APs Continue to Embrace Equities, While
Fund Investors Are Content to Sit on the Sidelines for
November Conventional Fund Investors Are Content to Sit
For the fifth straight month mutual fund investors were
net purchasers of fund assets, injecting a net $55.9
on the Sidelines for November
billion into the conventional funds business. Fixed
income funds (+$16.3 billion) and money market funds EXECUTIVE SUMMARY
(+$60.8 billion) witnessed net inflows for November, For the fifth month in a row investors were net purchasers of fund assets, injecting
while investors once again were net redeemers of stock &
mixed-asset funds (-$21.2 billion).
$55.9 billion into the conventional funds business (excluding ETFs, which are
reviewed in the section below) for November. But, for the ninth consecutive month
For the second month in a row Thomson Reuters Lippers
stock & mixed-asset funds witnessed net outflows, handing back $21.2 billion for
World Equity Funds macro-classification witnessed net
inflows, taking in $1.9 billion for November. November. For the eleventh month in a row fund investors were net purchasers of
fixed income funds, injecting $16.3 billion into the macro-group. And, for the fourth
For the twenty-second consecutive month authorized
participants (APs) were net purchasers of ETFs, injecting month in five money market funds witnessed net inflows, attracting $60.8 billion.
$35.3 billion for November. APs injected a net $28.5
billion into stock & mixed-asset ETFs and were net While the markets had a great start to the month, concerns about the tax-reform
purchasers of bond ETFs, injecting a net $6.7 billion. delay and fresh concerns about Russian meddling in the 2016 U.S. presidential
For the second straight month USDE ETFs (+$12.9 billion
election caused the major indices to sag mid-month. However, strengthening
for November) attracted the largest net draw of the five oil prices, the House of Representatives passing a sweeping tax reform bill, and
broad-based equity ETF macro-classifications. Thanksgiving sales beating expectations pushed the broad-based indices to close
at record highs at month-end. The Dow Jones Industrial Average Price Only Index
posted the strongest return (+3.83%) of the domestic indices, while the NASDAQ
TABLE 1 ESTIMATED NET FLOWS BY MAJOR Composite Price Only Index was the relative laggard, returning 2.17% for the month.
FUND TYPES, NOVEMBER 2017
VERSUS OCTOBER ($BIL) Investors pushed the Dow and the S&P 500 to new highs at the beginning of
November despite learning that October nonfarm payrolls came in below analyst
NOVEMBER OCTOBER
forecasts (261,000 versus an expected 325,000). Most pundits attributed the miss
Stock & Mixed Equity Funds -21.2 -15.9
to the lingering effects of Hurricanes Harvey and Irma.
Bond Funds 16.3 31.5
Money Market Funds 60.8 -8.7 Mid-month the markets witnessed two consecutive weeks of slight market declines
TOTAL 55.9 6.9 as investors expressed concern about delays in the promised corporate tax cuts;
the declines broke the eight-week recordsetting run by both the Dow and the
Source: Thomson Reuters Lipper
S&P 500. Despite another ballistic missile test by North Korea and a meltdown
Note: Columns may not sum because of rounding
in large-cap technology shares late in the month, investors turned upbeat during
the Thanksgiving-shortened trading week. U.S. stocks rallied on the last day of the
ESTIMATED NET FLOWS OF MAJOR month, with the Dow logging its first eight-month winning
TABLE 2
EQUITY FUND TYPES, NOVEMBER streak since 1995 as investors grew more confident about
2017 VERSUS OCTOBER ($BIL) the prospects of tax reform.

NOVEMBER OCTOBER
USDE Funds -21.4 -18.1
Sector Equity Funds -4.3 -1.7
World Equity Funds 1.9 4.5
Mixed-Asset Funds 2.2 -1.3
Alternatives Funds 0.4 0.7
Authored by:
TOTAL -21.2 -15.9
TOM ROSEEN
Source: Thomson Reuters Lipper HEAD OF RESEARCH SERVICES
Note: Columns may not sum because of rounding THOMSON REUTERS LIPPER

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY FUNDS
UNITED STATES DIVERSIFIED EQUITY ESTIMATED NET FLOWS OF 4X3-MATRIX USDE FUNDS,
TABLE 3
(USDE) FUNDS NOVEMBER 2017 VERSUS OCTOBER ($BIL)
For the sixth month in a row USDE Funds suffered
net outflows (-$21.4 billion for November). Investors VALUE CORE GROWTH NOVEMBER OCTOBER
shunned growth-oriented funds (-$7.1 billion) and
Large-Cap -1.7 -3.5 -3.1 -8.3 -11.4
large-cap funds (-$8.3 billion). Lippers Large-Cap Core
Multi-cap -1.4 1.0 -1.9 -2.3 -6.6
Funds classification (-$3.5 billion) suffered the largest
net redemptions of the 4x3-matrix classifications, Mid-Cap -0.8 -0.6 -1.2 -2.5 -1.6
bettered by Large-Cap Growth Funds and Multi- Small-Cap -0.5 -1.7 -0.8 -3.0 -2.0
Cap Growth Funds (-$3.1 billion and -$1.9 billion, TOTAL -4.4 -4.7 -7.1 -16.2 -21.6
respectively). Multi-Cap Core Funds (+$1.0 billion)
Source: Thomson Reuters Lipper
witnessed the only net inflows of the subgroup. For the Note: Columns and rows may not sum because of rounding
eighth month in nine the non-4x3-matrix subgroup
experienced net outflows (-$5.2 billion for November),
with Equity Income Funds experiencing the largest ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS,
net outflows (-$2.9 billion), bettered slightly by S&P TABLE 4
NOVEMBER 2017 VERSUS OCTOBER ($BIL)
500 Index Funds (-$2.1 billion). Year to date the USDE
Funds macro-classification suffered $178.4 billion of net
redemptions. NOVEMBER OCTOBER
Equity Leverage Funds -0.3 0.9
Equity Income Funds -2.9 -1.8
Specialty Diversified Equity Funds 0.0 0.0
S&P 500 Index Funds -2.1 4.4
TOTAL -5.2 3.5

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY FUNDS
WORLD EQUITY FUNDS ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY
TABLE 5
Shrugging off North Koreas first ballistic missile test in FUNDS, NOVEMBER 2017 VERSUS OCTOBER ($BIL)
more than two months and the purge of key dignitaries
in Saudi Arabia, fund investors once again embraced VALUE CORE GROWTH NOVEMBER OCTOBER
international issues. For the second consecutive
Large-Cap -0.2 -0.5 0.2 -0.5 -0.3
month fund investors were net purchasers of the
Multi-Cap -0.4 -1.6 0.3 -1.7 -2.2
World Equity Funds macro-classification, injecting
$1.9 billion for November. For the eleventh month Small-/Mid-Cap (No Style) 0.2 0.2 0.2
in a row institutional world equity funds (including TOTAL (LARGE & MULTI) -0.6 -1.9 0.5 -2.0 -2.3
variable insurance products) witnessed net inflows
Source: Thomson Reuters Lipper
(+$2.5 billion), while no-load funds witnessed their first Note: Columns and rows may not sum because of rounding
net inflows (+$1.8 billion) since May 2017 and loaded
world equity funds continued to suffer net redemptions
(-$2.4 billion). For the fifth month in a row Lippers
Global Diversified Equity Funds subgroup (-$2.0
TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED EQUITY
billion) witnessed net outflows, while for the twelfth FUNDS, NOVEMBER 2017 VERSUS OCTOBER ($BIL)
consecutive month the International Diversified Equity
Funds subgroup experienced net inflowstaking in a
little less than $3.8 billion for November. International VALUE CORE GROWTH NOVEMBER OCTOBER
Multi-Cap Core Funds (+$4.7 billion) remained at Large-Cap -0.1 -3.2 0.6 -2.7 -0.5
the top of the World Equity Funds classifications.
Multi-Cap 0.8 4.7 0.3 5.9 6.1
International Multi-Cap Value Funds, taking in $831
Small-/Mid-Cap 0.1 0.2 0.4 0.6 0.4
million net, was the runner-up for the month, followed
TOTAL 0.8 1.7 1.3 3.8 6.0
by International Large-Cap Growth Funds (+$619
million). At the bottom of the pile International Large-
Source: Thomson Reuters Lipper
Cap Core Funds witnessed the largest net redemptions Note: Columns and rows may not sum because of rounding
(-$3.2 billion), bettered by Global Multi-Cap Core
Funds (-$1.6 billion). Year to date World Equity Funds
attracted a net $51.5 billionthe only year-to-date net
inflows of the five broad-based equity groups.
TABLE 7 ESTIMATED NET FLOWS OF REMAINING WORLD EQUITY FUND
CLASSIFICATIONS, NOVEMBER 2017 VERSUS OCTOBER ($BIL)

NOVEMBER OCTOBER
China Region Funds 0.1 0.0
Emerging Markets Funds 0.6 1.0
European Region Funds -0.3 0.1
Global Equity Income Funds -0.3 -0.3
India Region Funds 0.0 0.0
International Equity Income Funds 0.1 -0.1
Japanese Funds 0.0 0.2
Latin American Funds 0.0 0.0
Pacific Region Funds 0.0 0.0
Pacific ex-Japan Funds 0.0 0.0
TOTAL 0.2 0.8

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY FUNDS
SECTOR EQUITY FUNDS ESTIMATED NET FLOWS OF SECTOR EQUITY FUNDS, NOVEMBER
TABLE 8 2017 VERSUS OCTOBER ($BIL)
Despite strengthening commodities prices during the
month, the Sector Equity Funds macro-classification
continued to lose favor among investors. For the fourth NOVEMBER OCTOBER
month running investors were net sellers of funds in Precious Metals Equity Funds -0.1 -0.1
the macro-classification, which handed back some
Basic Materials Funds 0.0 0.1
$4.3 billion for November. The only relatively bright
Consumer Goods Funds -0.2 -0.1
spots in the group were Global Science/Technology
Funds (+$181 million, leading the pack for the third Commodities Energy Funds 0.0 0.0
consecutive month) and International Real Estate Commodities General Funds 0.0 0.1
Funds (+$82 million). Taking the number-three and Commodities Specialty Funds 0.0 0.0
number-four positions were Science & Technology Consumer Services Funds -0.1 -0.1
Funds (+$18 million) and Telecommunication Funds Energy MLP Funds -0.4 -0.1
(+$11 million). The Health/Biotechnology Funds Financial Services Funds -0.4 0.1
classification suffered the largest net outflows of the
Global Financial Services Funds 0.0 0.0
group, handing back some $1.0 billion for November,
Global Health/Biotechnology Funds -0.5 -0.5
bettered by Real Estate Funds (-$819 million). Of the
24 Lipper classifications in the Sector Equity Funds Global Infrastructure Funds -0.2 0.0
macro-classification 15 suffered net redemptions Global Natural Resources Funds -0.1 -0.2
for November. Year to date the macro-classification Global Real Estate Funds -0.2 0.2
handed back slightly less than $18.3 billion net. Global Science/Technology Funds 0.2 0.2
Health/Biotechnology Funds -1.0 -0.5
Industrials Funds -0.2 0.1
International Real Estate Funds 0.1 0.2
Natural Resources Funds -0.2 -0.2
Real Estate Funds -0.8 -0.8
Specialty/Miscellaneous Funds -0.1 0.0
Science &Technology Funds 0.0 0.0
Telecommunication Funds 0.0 0.0
Utility Funds -0.1 -0.2
TOTAL -4.3 -1.7

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY FUNDS
TABLE 9 ESTIMATED NET FLOWS OF LIFECYCLE AND LIFESTAGE FUNDS,
MIXED-ASSET FUNDS NOVEMBER 2017 VERSUS OCTOBER ($BIL)
For the second month in three the Mixed-Asset Funds
macro-classification witnessed net inflows, taking in
$2.2 billion for November. Convertible Securities Funds NOVEMBER OCTOBER
and Flexible Portfolio Funds suffered net redemptions Mixed Asset Target 2010 Funds -0.1 -0.2
of $142 million and $1.1 billion, respectively. For the Mixed Asset Target 2015 Funds -0.1 -0.3
fifth month in a row the mixed-asset target date Mixed Asset Target 2020 Funds 0.4 0.1
funds subgroup witnessed net inflows, taking in Mixed Asset Target 2025 Funds 1.6 1.1
approximately $7.4 billion for November, while the Mixed Asset Target 2030 Funds 1.1 0.5
primarily broker-recommended mixed-asset target Mixed Asset Target 2035 Funds 1.4 0.8
allocation funds subgroupfor the nineteenth Mixed Asset Target 2040 Funds 0.8 0.2
consecutive monthwitnessed net outflows (-$4.1 Mixed Asset Target 2045 Funds 1.0 0.7
billion). Seven of the sixteen classifications in the Mixed Asset Target 2050 Funds 0.7 0.6
subgroups suffered net redemptions for the month,
Mixed Asset Target 2055+ Funds 0.8 0.8
with Mixed-Asset Target Allocation Moderate Funds
Mixed Asset Target Today Funds -0.1 0.0
(-$2.7 billion) having the largest net redemptions,
Mixed Asset Target Alloc Aggres Funds -0.2 -0.1
bettered by Mixed-Asset Target Allocation Growth
Funds (-$1.1 billion) and Mixed-Asset Target Allocation Mixed Asset Target Alloc Conserv Funds -0.1 -0.5
Aggressive Funds (-$0.2 billion). Mixed-Asset Target Mixed Asset Target Alloc Growth Funds -1.1 -1.2
2025 Funds and Mixed-Asset Target 2035 Funds Mixed Asset Target Alloc Moderate Funds -2.7 -2.7
(+$1.6 billion and $1.4 billion, respectively) attracted the Retirement Income 0.1 0.1
largest net draws of the classifications. Year to date the TOTAL 3.4 -0.4
Mixed-Asset Funds macro-classification suffered net
Source: Thomson Reuters Lipper
redemptions of $1.7 billion.
Note: Columns may not sum because of rounding

ALTERNATIVES FUNDS
For the second consecutive month the Alternatives Funds
TABLE 10 ESTIMATED NET FLOWS OF ALTERNATIVES FUNDS, NOVEMBER
macro-classification experienced net inflows (+$0.4 2017 VERSUS OCTOBER ($BIL)
billion for November) as Alternative Long/Short Equity
Funds (+$522 million) and Alternative Multi-Strategy NOVEMBER OCTOBER
Funds (+$368 million) witnessed the largest net inflows Absolute Return Funds -0.1 0.7
of the macro-classification. Alternative Managed Futures Alternative Active Extension Funds -0.1 -0.1
Funds (-$401 million), Alternative Other Funds (-$295 Alternative Equity Market Neutral Funds 0.3 0.0
million, a variable underlying product classification), Alternative Event Driven Funds 0.0 -0.3
and Alternative Global Macro Funds (-$64 million) Alternative Global Macro Funds -0.1 0.3
handed back the largest net amounts. Year to date the Alternative Long/Short Equity Funds 0.5 0.9
Alternatives Funds macro-classification handed back Alternative Managed Futures Funds -0.4 -0.5
some $9.6 billion net. Alternative Multi-Strategy Funds 0.4 0.2
Alternative Other Funds -0.3 -0.3
Dedicated Short Bias Funds 0.1 -0.1
TOTAL 0.4 0.7

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

FIXED INCOME FUNDS


FIXED INCOME FUNDS ESTIMATED NET FLOWS OF MAJOR FIXED INCOME FUND TYPES,
TABLE 11
Despite the all-but-certain chance of a December NOVEMBER 2017 VERSUS OCTOBER ($BIL)
FOMC interest rate hike and stronger-than-expected
economic data, investors continued their search for
yield in November. For the eleventh consecutive month TAXABLE MUNICIPAL NOVEMBER OCTOBER
investors were net purchasers of fixed income funds, Long-Term Bond -0.3 0.8 0.5 10.3
injecting a net $16.3 billion. On the taxable bond Short & Intermediate 15.0 0.9 15.9 21.2
(nonmoney market) funds side (+$14.6 billion) 18 of Money Market 60.3 0.5 60.8 -8.7
Lippers 28 classifications witnessed net inflows, while TOTAL 75.0 2.1 77.1 22.8
on the tax-exempt side (+$1.7 billion) only 9 of the 20
classifications in the municipal bond funds universe Source: Thomson Reuters Lipper
saw net inflows. Investors padded the coffers of Core Note: Columns and rows may not sum because of rounding

Bond Funds (+$7.8 billion), Multi-Sector Income Funds


(+$4.0 billion), and Core Plus Bond Funds (+$3.6
billion). The High Yield Funds classification witnessed
the largest net redemptions of the group, handing
back $6.1 billion for November, bettered by Loan
Participation Funds (-$2.2 billion), Short Investment-
Grade Debt Funds (-$417 million), and GNMA Funds
(-$292 million). Half of the outflows from Loan
Participation Funds were the result of the merging
of Highland Floating Rate Opportunities Funds II
(Class A, C, and Z) into a closed-end fund of a similar
name, accounting for $1.1 billion of the outflows. On
the municipal bond funds side Intermediate Municipal
Debt Funds (+$837 million) witnessed the largest
net inflows, while Other States Municipal Debt Funds
(-$162 million) suffered the largest net redemptions
of the subgroup. Year to date the Fixed Income Funds
macro-classification took in a net $255.4 billion.

MONEY MARKET FUNDS


For the fourth month in five investors were net
purchasers of the Money Market Funds macro-
classification, injecting $60.8 billion for November.
On the taxable side (+$60.3 billion) all six Lipper
classifications witnessed net inflows, with Institutional
U.S. Government Money Market Funds (+$28.0
billion) and Institutional U.S Treasury Money Market
Funds (+$13.7 billion) taking in the largest net sums.
U.S. Treasury Money Market Funds witnessed the
smallest net inflows for the month (+$256 million).
On the tax-exempt side (+$493 million) two of the five
classifications witnessed net inflows, with Tax-Exempt
Money Market Funds (+$1.2 billion) benefiting from
the largest by far net purchases, followed by New
York Tax-Exempt Money Market Funds (+$28 million).
Institutional Tax-Exempt Money Market Funds (-$676
million) witnessed the largest net outflows of the
subgroup. Year to date Money Market Funds took in a
little over $49.7 billion net.

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FUNDFLOWS INSIGHT REPORT
THOMSON REUTERS LIPPER RESEARCH SERIES

NOVEMBER 30, 2017

APs Remain Fully Engaged, Padding TABLE 1 ESTIMATED NET FLOWS BY MAJOR
ETF TYPES, NOVEMBER 2017
VERSUS OCTOBER ($BIL)
the Coffers of ETFs for the
Twenty-Second Consecutive Month Stock & Mixed Equity ETFs
NOVEMBER
28.5
OCTOBER
36.9
Bond ETFs 6.7 9.8
ETF EXECUTIVE SUMMARY
TOTAL 35.3 46.7
For the twenty-second consecutive month ETFs attracted net new money, taking
in $35.3 billion for November. For the eighteenth consecutive month authorized Source: Thomson Reuters Lipper
participants (APs, those investors who actually create and redeem ETF shares) Note: Columns may not sum because of rounding
were net purchasers of stock & mixed-asset ETFsinjecting $28.5 billion. And
for the twenty-ninth month in a row they were net purchasers of bond ETFs
injecting $6.7 billion for November. APs were also net purchasers of four of the ESTIMATED NET FLOWS OF MAJOR
TABLE 2
five equity-based ETF macro-classifications: USDE ETFs (+$12.9 billion), World EQUITY ETF TYPES, NOVEMBER 2017
Equity ETFs (+$10.0 billion), Sector Equity ETFs (+$5.8 billion), and Mixed-Asset VERSUS OCTOBER ($BIL)
ETFs (+$134 million), while being net redeemers of Alternatives ETFs (-$200
million).
NOVEMBER OCTOBER
The U.S. markets started November on an up note despite investors learning USDE ETFs 12.9 19.7
that October nonfarm payrolls came in below analyst forecasts (261,000 versus Sector Equity ETFs 5.8 5.6
an expected 325,000). However, the unemployment rate had dropped to 4.1% World Equity ETFs 10.0 12.1
from 4.2%. Investors cheered Apples Q3 earnings, which handily beat estimates, Mixed-Asset ETFs 0.1 -0.1
and news that the October ISM nonmanufacturing index rose to 60.1, its Alternative ETFs -0.2 -0.4
strongest reading since August 2005. Nonetheless, markets sagged mid-month TOTAL 28.5 36.9
as investors worried about delays in the promised corporate tax cuts. Investors
Source: Thomson Reuters Lipper
appeared to be losing faith that the Republican-led Congress could pass a Note: Columns may not sum because of rounding
bill before the holidays. And, despite the House of Representatives passing a
sweeping bill to overhaul the tax code and with October housing starts soaring
13.7%, new questions over Special Counsel Robert Muellers investigation into
possible collusion with Russias election meddling placed a pall over the markets.
Notwithstanding a meltdown in large-cap tech stocks late in the month, stocks
rallied to record highs after forecasts from Adobe showed Black Friday sales
online hit a record $5.0 billion and as the Senate Budget Committee voted 12-11
to advance the Republican tax bill, moving the proposed bill a step closer to a
Senate vote. U.S. stocks rallied on the last day of the month, pushing the Dow
above 24,000 for the first time in history.

For the month of November Treasury yields rose along all maturities of the curve,
except the 20- and 30-year yields, which declined 1 basis point (bp) and 5 bps,
respectively. According to the CME Group, the probability of a December interest
rate hike remained above 90%. The one-year yield witnessed the largest increase,
rising 19 bps to 1.62% at month-end. Commodities prices were up for the month,
with near-month gold prices increasing 0.49% to close November at $1,273.20/ Authored by:
ounce and with front-month crude oil prices rising 5.55% to close the month at TOM ROSEEN
$57.40/barrel. HEAD OF RESEARCH SERVICES
THOMSON REUTERS LIPPER

7
FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY ETFs
UNITED STATES DIVERSIFIED EQUITY ESTIMATED NET FLOWS OF USDE 4X3-MATRIX ETFs, NOVEMBER
TABLE 3
(USDE) ETFs 2017 VERSUS OCTOBER ($MIL)
For the eighteenth consecutive month the USDE ETFs
macro-classification experienced net inflows, attracting VALUE CORE GROWTH NOVEMBER OCTOBER
some $12.9 billion for November. Lippers broad-based
Large-Cap 744.6 954.4 2,899.0 4,598.0 4,779.8
4x3-matrix subgroup witnessed net inflows for the
Multi-Cap 728.9 2,838.8 155.7 3,723.4 2,555.4
fourth consecutive month, attracting $12.6 billion,
with Small-Cap Core ETFs (+$3.2 billion) witnessing Mid-Cap 199.5 680.7 406.7 1,286.8 1,485.5
the largest net inflows of the macro-classification. Small-Cap -147.9 3,212.6 -61.8 3,002.8 3,927.6
For the second month in a row large-cap ETFs (+$4.6 TOTAL 1,525.1 7,686.5 3,399.5 12,611.0 12,748.3
billion) experienced the largest net inflows of the
Source: Thomson Reuters Lipper
four capitalization groups, while mid-cap ETFs (+$1.3 Note: Columns and rows may not sum because of rounding
billion) were the relative laggards. Once again, core-
oriented ETFs (+$7.7 billion) attracted the largest net
inflows of the valuation subgroups for the month,
while their value- and growth-oriented counterparts
attracted $1.5 billion and $3.4 billion, respectively. ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS,
TABLE 4
Small-Cap Value ETFs (-$148 million) and Small-Cap NOVEMBER 2017 VERSUS OCTOBER ($MIL)
Growth ETFs (-$62 million) witnessed the only net
outflows of the subgroup. Outside the 4x3-matrix
NOVEMBER OCTOBER
classifications Equity Income ETFs witnessed the
Equity Leverage ETFs 382.5 508.3
largest net inflows (+$1.1 billion). iShares Core S&P
500 ETF (IVV) individually witnessed the largest net Equity Income ETFs 1,057.7 443.0
inflows (+$2.7 billion), while SPDR S&P 500 ETF Trust Specialty Diversified ETFs 0.0 0.0
(SPY) witnessed the largest individual net outflows S&P 500 Index ETFs -1,198.0 5,989.1
(-$5.4 billion). Year to date USDE ETFs attracted some TOTAL 242.2 6,940.4
$114.0 billion net.
Source: Thomson Reuters Lipper
Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY ETFs
WORLD EQUITY ETFs ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY ETFs,
TABLE 5
For the twelfth month in a row APs were net purchasers NOVEMBER 2017 VERSUS OCTOBER ($MIL)
of World Equity ETFs, injecting $10.0 billion for
November. APsfor the fourteenth month running VALUE CORE GROWTH NOVEMBER OCTOBER
padded the coffers of International Diversified Equity
Large-Cap 0.1 165.0 0.0 165.1 -103.3
ETFs, purchasing a net $6.1 billion for November,
and for the ninth consecutive month they were net Multi-Cap -0.1 383.5 0.0 383.4 111.9

purchasers of the Global Diversified Equity ETFs Small-/Mid-Cap (No Style) 18.5 18.5 2.3
subgroup (+$567 million for November). For the twelfth TOTAL (LARGE & MULTI) 0.0 548.5 0.0 566.9 11.0
month in a row APs were also net purchasers of the
Source: Thomson Reuters Lipper
non-3x3-matrix subgroup, injecting a net $3.3 billion. Note: Columns and rows may not sum because of rounding
The International Multi-Cap Core ETFs classification,
attracting a net $4.6 billion, remained at the top of
the charts for the month, while Japanese ETFs (+$1.2
billion) and Emerging Markets ETFs (+$877 million)
TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED
took the number-two and -three spots on the list. EQUITY ETFs, NOVEMBER 2017 VERSUS OCTOBER ($MIL)
Pacific Region ETFs experienced the largest net
redemptions of the macro-classification, handing back
$78 million for the month. iShares Core MSCI EAFE VALUE CORE GROWTH NOVEMBER OCTOBER
ETF (IEFA), with net inflows of $1.1 billion for November, Large-Cap 0.3 88.5 -2.7 86.1 108.5
attracted the most individual interest in the macro-
Multi-Cap 158.0 4649.9 275.7 5,083.6 6,068.3
classification. iShares Core MSCI Europe ETF (IEUR)
Small-/Mid-Cap 1.7 147.1 778.6 927.3 309.0
handed back the largest individual net redemptions
(-$380 million). Year to date World Equity ETFs took in TOTAL 159.9 4,885.5 1,051.6 6,097.1 6,485.8
some $133.9 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, NOVEMBER 2017 VERSUS OCTOBER ($MIL)

NOVEMBER OCTOBER
China Region ETFs 115.3 59.6
Emerging Markets ETFs 876.9 3,983.0
European Region ETFs 275.4 -675.4
Global Equity Income ETFs 102.9 37.9
India Region ETFs 78.6 17.2
International Equity Income ETFs 361.2 597.6
Japanese ETFs 1,171.1 865.2
Latin American ETFs 100.4 460.4
Pacific Region ETFs -77.8 88.0
Pacific ex-Japan ETFs 283.5 129.8
TOTAL 3,287.6 5,563.1

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

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FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY ETFs
SECTOR EQUITY ETFs TABLE 8 ESTIMATED NET FLOWS OF SECTOR EQUITY ETFs,
For the third consecutive month Sector Equity ETFs NOVEMBER 2017 VERSUS OCTOBER ($MIL)
witnessed net inflowstaking in $5.8 billion for
November, with only 13 of Lippers 27 Sector Equity NOVEMBER OCTOBER
ETF classifications witnessing net outflows. Financial Precious Metals Equity ETFs -74.8 807.5
Services ETFs (+$2.1 billion), Science & Technology
Basic Materials ETFs -4.0 971.5
ETFs (+$2.1 billion), and Consumer Services ETFs
Consumer Goods ETFs 8.0 -967.8
(+$1.2 billion) were at the top of the charts for the
month, while Utility ETFs (-$678 million), Health/ Commodities Agriculture ETFs -52.1 28.0
Biotechnology ETFs (-$555 million), and Commodities Commodities Energy ETFs -324.2 -169.1
Energy ETFs (-$324 million) suffered the largest net Commodities General ETFs 395.8 159.0
redemptions. Financial Select Sector SPDR Fund Commodities Base Metals ETFs -1.9 -7.7
(XLF), taking in a net $1.5 billion, attracted the largest Commodities Precious Metals ETFs -191.0 -462.7
individual draw for November. At the bottom of the Commodities Specialty ETFs -63.3 -84.1
individual ETF pile was First Trust Utilities AlphaDEX
Consumer Services ETFs 1,187.5 -343.1
Fund (FXU), handing back a net $866 million for the
Energy MLP ETFs -10.5 120.3
month. Year to date Sector Equity ETFs attracted a net
$39.6 billion. Financial Services ETFs 2,136.4 1,714.8
Global Financial Services ETFs 67.3 148.7
Global Health/Biotechnology ETFs -32.7 -8.4
Global Infrastructure ETFs 153.2 38.2
Global Natural Resources ETFs 81.2 123.6
Global Real Estate ETFs 94.1 33.1
Global Science/Technology ETFs 294.6 192.8
Health/Biotechnology ETFs -554.5 -337.4
Industrials ETFs 345.7 2,399.6
International Real Estate ETFs 229.0 122.6
Natural Resources ETFs -237.6 432.3
Real Estate ETFs 500.9 -391.8
Specialty/Miscellaneous ETFs 421.6 296.1
Science &Technology ETFs 2,127.0 1,525.1
Telecommunication ETFs -28.7 76.4
Utility ETFs -677.9 -808.7
TOTAL 5,789.2 5,608.7

Source: Thomson Reuters Lipper


Note: Columns may not sum because of rounding

10
FUNDMARKET INSIGHT REPORT NOVEMBER 2017

EQUITY ETFs
ALTERNATIVES ETFs ESTIMATED NET FLOWS OF ALTERNATIVES ETFs, NOVEMBER 2017
For the third month in a row Alternatives ETFs TABLE 9
VERSUS OCTOBER ($MIL)
witnessed net outflows, handing back $200 million
for November. APs were net purchasers of Alternative NOVEMBER OCTOBER
Long/Short Equity ETFs (+$54 million), with Alternative Absolute Return ETFs -3.4 1.9
Event-Driven ETFs and Alternative Multi-Strategy ETFs Alternative Active Extension 3.2 3.1
experiencing the next largest net inflows of the group, Alternative Equity Market Neutral ETFs 2.5 -1.0
taking in some $31 million and $9 million, respectively. Alternative Event Driven ETFs 30.7 33.5
Dedicated Short-Bias ETFs (-$290 million) suffered the
Alternative Global Macro ETFs -2.6 2.5
largest net redemptions of the group. VelocityShares
Alternative Long/Short Equity ETFs 54.0 67.4
3x Inverse Crude ETN (DWT), taking in some $73
million, witnessed the largest individual net inflows Alternative Managed Futures ETFs -4.0 1.2
of the macro-classification, while ProShares Short Alternative Multi-Strategy ETFs 9.3 24.4
VIX Short-Term Futures ETF (SVXY) handed back Dedicated Short Bias ETFs -289.8 -490.3
$99 million and suffered the largest individual net TOTAL -200.2 -357.3
withdrawals. Alternatives ETFs took in a net $3.0 billion
year to date. Source: Thomson Reuters Lipper
Note: Columns may not sum because of rounding

11
FUNDMARKET INSIGHT REPORT NOVEMBER 2017

FIXED INCOME ETFs


FIXED INCOME ETFs TABLE 10 ESTIMATED NET FLOWS OF MAJOR FIXED INCOME ETF TYPES,
For the twenty-ninth month in a row bond ETFs (+$6.7 NOVEMBER 2017 VERSUS OCTOBER ($MIL)
billion for November) witnessed net inflows. On the
taxable bond ETFs side (+$6.3 billion) 21 of the 28 TAXABLE MUNICIPAL NOVEMBER OCTOBER
Lipper classifications attracted net new money for the Long-Term Bond 1,537.7 335.3 1,873.0 3,982.4
month, while the tax-exempt offerings (+$416 million) Short & Intermediate 4,782.3 80.9 4,863.3 5,820.1
reported net inflows into all eight classifications. TOTAL 6,320.0 416.3 6,736.3 9,802.5
On the taxable side net flows into Core Bond ETFs
(+$2.3 billion) and Corporate BBB-Rated Debt ETFs Source: Thomson Reuters Lipper
Note: Columns and rows may not sum because of rounding
(+$2.1 billion) beat those to the other classifications.
General U.S. Treasury ETFs (-$1.7 billion) and Loan
Participation ETFs (-$482 million) suffered the largest
net redemptions of the group. iShares Core US
Aggregate Bond ETF (AGG), with net inflows of $1.1
billion, attracted the largest individual net inflows of
the group, while iShares 20+ Year Treasury Bond ETF
(TLT), handing back some $1.3 billion for November,
suffered the largest individual net redemptions. On
the tax-exempt side General & Insured Municipal Debt
ETFs (+$300 million) attracted the largest net inflows,
while California Municipal Debt ETFs and Intermediate
Municipal Debt ETFs witnessed the smallest net inflows
of the subgroup (+$10 thousand and +$2 million,
respectively). Year to date the Fixed Income ETFs
macro-classification attracted a net $117.8 billion.

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