Inflows into global equity mutual funds and exchange-traded funds have totaled $81.5 billion so far this year, putting them on track to surpass the previous four-month record of $86.0 billion from December 2005 through March 2006, according to TrimTabs Investment Research.
“U.S. investors continue to follow the printing presses into European and Japanese equities,” said David Santschi, TrimTabs CEO. “A record that has been held for nine years is almost sure to fall.”
In March alone, flows into global equity mutual funds and exchange-traded funds rose to a record $34.8 billion, exceeding the previous monthly record of $34.4 billion in January 2013, TrimTabs said in a release. These funds have taken in $14.8 billion this month through Friday, April 10.
Buying has been heaviest among European funds, TrimTabs said. Europe equity ETFs issued a record $7.8 billion (14.8% of assets) in March, and they have issued $2.6 billion (4.6% of assets) this month through April 10.
“The performance of European funds has improved of late, which is helping drive inflows,” said Santschi. “Although these funds dropped 1.9% in March, massive buying persisted, and they are up 3.0% so far this month.”
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