As assets rebound, ETF sales revive — mutual funds don’t

In October, redemptions from balanced funds increased, rising from just under $5 billion in September to $5.7 billion.

However, equity fund redemptions improved, dropping to $1.9 billion last month from $2.9 billion.

Bond fund redemptions eased a bit too, declining from $1.9 billion to almost $1.7 billion.

Year to date, long-term net redemptions are now at about $31.5 billion. By contrast, at the same point last year, the industry had booked $111.8 billion in positive net sales.

IFIC also reported that, while mutual funds remained in negative net sales territory in October, ETF sales jumped from $1.85 billion in September to $3.35 billion in October.

The rebound came entirely in long-term funds.

In October, long-term ETFs recorded $1.85 billion in net sales, up from just $136 million in the previous month.

In particular, equity ETFs enjoyed $896 million in monthly net sales, compared with $390 million in negative net sales for September.

Bond ETF sales also rose, climbing from $540 million to $746 million, month over month.

The rebound in ETF net sales came as assets surged by 4.5% in October to $300.5 billion.

Mutual fund assets also increased, albeit at a slower pace — rising 2.3% in the month to $1.796 trillion, which represented a gain of over $40 billion.