After $6.5B of Withdrawals, Investors Cautiously Approach High Yield Mart

US high yield fund

U.S. high-yield funds recorded an inflow of $310 million for the week ended Nov. 29, according to weekly reporters to Lipper only. This follows last week’s exit of $209 million and snaps a streak of four consecutive weeks of outflows, which saw a total exit of $6.5 billion over that period.

ETFs were the driver behind this week’s action, with an inflow of $602 million that outweighed the $292 million exodus from mutual funds. Mutual funds have now posted outflows for seven consecutive weeks, for a total exit of $5.4 billion over that span.

The four-week trailing average narrowed to negative $1.2 billion this week, from negative $1.6 billion last week, which marked the widest level since March.

The year-to-date total outflow is now roughly $12.9 billion, reflecting a $16.3 billion exit from mutual funds and a $3.4 billion inflow to ETFs.

The change due to market conditions this past week was an increase of $133 million. Total assets at the end of the observation period were $208.5 billion. ETFs account for about 25% of the total, at $52.2 billion. — James Passeri

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