Loan funds post biggest outflow since March 2020, losing $1.56B for the week

U.S. loan funds today posted the largest weekly outflow since the onset of the pandemic in March 2020, losing $1.56 billion for the week ended May 18, according to Lipper. Over the last two weeks, $2.16 billion has exited the asset class, wiping out the inflows of the previous three weeks.

Like last week, ETFs saw the heaviest outflow this week, at about $855.2 million, versus a $709.4 million outflow in the mutual fund space. The year-to-date inflow now sits at $18.4 billion. The four-week moving average, meanwhile, moved into the red this week for the first time since December 2020, at negative $234.4 million, from a positive $363.3 million last week. The change due to market conditions was again negative this week, at negative $830.7 million versus negative $1.54 billion last week.

Of the roughly $101 billion of total assets at U.S. loan funds, $20 billion are registered as ETFs, or about 19.7% of the total.