U.S. investors put a net $38 billion into mutual funds in August, according to mutual fund research firm Strategic Insight.
Money market funds and bond funds were the strongest gainers with net inflows of $30 billion and $10 billion, respectively. Equity funds had net outflows of $2 billion: U.S. equity funds had inflows of $5 billion, while $7 billion flowed out of international equity funds.
Year to date through August, mutual fund inflows in the U.S. were $470 billion, with money market funds net inflows of $340 billion and bond fund net inflows of $114 billion. Equity mutual funds, excluding ETFs, had net outflows of $22 billion year to date; including ETFs, equity funds had net inflows of $6 billion year to date through August.
ETFs have done well in terms of flow for the year, said Loren Fox, senior research analyst, in a phone interview. He added that the performance of equity funds has been surprisingly good given what the markets have been doing. But still, flows are significantly down from the first eight months of 2007, where equity funds had net inflows of $180 billion.
Weve seen a lot more flows to money market funds, Mr. Fox said. People were fleeing to safety.