Flows Into Equity Mutual Funds And ETFs

Published 11/08/2012, 02:22 PM
Updated 07/09/2023, 06:31 AM

This Great Graphic comes from Barry Ritholtz's Big Picture blog. He appears to have gotten the chart from Bianco Research.

It shows the flow of funds into domestic U.S. mutual funds and ETFs (blue bar) and into foreign equity mutual funds and ETFs (red line).
Equity Flows
It confirms what has long been suspected -- money is leaving U.S. equities and the fascination with chasing returns overseas has eased considerably over the past couple of years.

There may be a demographic force behind part of this as the baby boom generation retires. There may be a cyclical effect as well. After the Great Depression, it took more than a generation to rekindle an equity culture in the U.S. Americans have seemingly discovered fixed income products, but it is not clear that this is sustainable. Many observers are concerned that many of these new investors are under-appreciating duration risk, while receiving low or even negative real rates now.

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