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US Equities Witness Net Inflows for 2015

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Mutual fund flows

US equities have seen more than half of the total deployment by mutual funds. The equities received ~$17 trillion of the more than $30 trillion mutual fund flows across the globe. US equities witnessed outflows from the equities in the last few weeks. For the week ending April 2, 2014, US equities saw outflows of $3 billion. This was mainly due to the slowing real estate, servicing, and manufacturing activity for the current week.

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The offerings from mutual funds incorporate active fund management. This is preferred by investors—looking for expert money managers in order to generate higher returns than the index. Higher fund flows will benefit T. Rowe Price (TROW), Franklin Resources (BEN), Vanguard, Fidelity, and American Funds.

Fund flows in ETFs

In the case of ETFs and mutual funds, US equities command a higher portion of the asset deployment. ETFs invested more than $2 trillion out of $3 trillion in the US equities. US equities saw net outflows through the ETFs in 2015. The ETFs covering the theme for European markets attracted major investment flow.

ETFs like the WisdomTree Europe Hedged Equity (HEDJ), the Vanguard Dividend Appreciation (VIG), the Vanguard Total Stock Market (VTI), and the Vanguard S&P 500 (VOO) attracted the highest flows. State Street (STT) sponsored ETFs have seen major outflows in 2015—mainly due to competition from Vanguard and BlackRock (BLK). The biggest outflows have been from the SPDR S&P 500 (SPY), the iShares MSCI Emerging Markets (EEM), and the iShares Russell 2000 (IWM).

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