– Money continues to leave domestic equity mutual funds and exchange-traded funds (ETFs) and move into bond funds and ETFs. This shows a potential continued lack of trust when it comes to equities.
– This year the difference between the two has been very pronounced. Year-to-date $89.1 billion has left domestic equity funds and ETFs, while $199.9 billion has moved into bond funds and ETFs.
Source: LPL Research, Investment Company Institute 10/05/16
Important Disclosures: Investing in mutual funds and ETF’s involve risk, including possible loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted.