Record Sums Flowed Into US-Listed Mutual Funds, ETFs In January - Data

Eliane Chavagnon

5 February 2013

Investors poured a record $77.4 billion into US-listed equity mutual funds and exchange-traded funds in January, new TrimTabs figures show.

“The inflow in January smashed the previous record of $53.7 billion in February 2000, which was just before the technology stock bubble burst,” said David Santschi, chief executive at TrimTabs.

According to the latest numbers, last month $39.3 billion flowed into US equity mutual funds and ETFs, while $38.1 billion flowed into global equity mutual funds and ETFs - both of which were the highest on record. The previous record for US equity funds was $34.6 billion in February 2000, while the previous record for global equity funds was $27.1 billion in January 2006.

“Big inflows from fund investors have historically coincided with market tops,” Santschi said. “Note that four of the top 10 biggest inflows were in early 2000.”

While there is no way to determine exactly what drives flows at any given time, the fact that inflows did not slow late last month suggests that buying was driven by market optimism as much as by investments of bonus money or reinvestments after tax-related stock sales late last year, TrimTabs said.