May Fund Flows Follow April Trends

Stock and bond funds experienced net inflows of $55.5 billion in May, according to the Financial Research Corporation (FRC).

The Corporate Bond objective led the net inflow category with $20.9 billion, followed by the Domestic Equity objective with $12.5 billion—the same two objectives that led in April (see “Investors Choose Corporate Bonds in April“). The International/Global Equity objective took in $10.9 billion; Tax-Free Bond posted net inflows of $7.9 billion; Government Bond saw a $2.2 billion net intake, and the International/Global Fixed Income objective took in $1 billion.

By Morningstar category, investors chose Intermediate-Term Bond funds, which received $10.7 billion, FRC data showed. Diversified Emerging Markets funds posted a $4.4 net inflow, while Short-Term Bond funds ($4.0 billion), High-Yield Bond funds ($3.8 billion), and Pacific/Asia ex-Japan Stock funds ($3.7 billion) rounded out the top five.

The PIMCO Total Return fund was again the best-selling fund for the month with a net inflow of $3.2 billion. BGI’s iShares Brazil fund came in second with $1.6 billion of monthly net flows. Vanguard’s Short-Term Investment fund ($1.2 billion), Direxion’s Final Bear 3X ($1.1 billion), and BGI’s iShares MSCI Emerging Market ($1.1 billion) rounded out the top five.

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