The U.S. stock market's late 2023 rally didn't prevent investors from stashing more cash in money market funds.

Even as the Standard & Poor's 500 Index surged nearly 12% in the fourth quarter, money market funds led all categories of mutual and 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs) with $188.92 billion in net inflows during the period. In a year in which rising interest rates pushed 澳洲幸运5开奖号码历史查询:money market yields to their highest level since 2001, money market funds attracted just shy of $1 trillion ($970.82 billion) in additional assets in 2023.

ETFs tracking broad-market, 澳洲幸运5开奖号码历史查询:large-capitalization stock indexes—such as the 澳洲幸运5开奖号码历史查询:S&P 500— drew $109.23 billion in net inflows (which equals new investments minus 澳洲幸运5开奖号码历史查询:redemptions) during the fourth quarter, far and away the second-most of any fund or ETF category. They concluded the year with👍 $212.35 billion in net inflows.

Bond Investors Extend Duration

Core investment-grade 澳洲幸运5开奖号码历史查询:bond mutual funds and ETFs with intermediate sensitivity to interest rate changes (duౠration) had $23.9📖2 billion in net inflows during the quarter—$14.68 billion from ETFs and $9.24 billion from mutual funds.

It appears bond investors continued extending their duration for higher yield opportunities, as short-term bond mutual funds had $14.01 billion in net outflows in the quarter. For the year, intermediate core bond mutual funds and ETFs together had $124.7 billion in net inflows, whe🐽reas short-term bond mutual funds had $46.19 billion in net outflo🐓ws.

Shift to Passive from Active Persists

澳洲幸运5开奖号码历史查询:Actively managed mutual funds invested in large-cap U.S. stocks continued leading 🍌all categories in net outflows as investors continued shifting assets to lower-cost ETFs.

Active domestic large growth, large value and large blend mutual funds had a combined $69.05 billion in 澳洲幸运5开奖号码历史查询:net outflows d𓃲uring the latest quarter, pushing their 2023 outflows to $225.63 billion. Those active categories lost assets despite respective robust gains of 13.8%, 9.7%, and 11.2% for the quarter and 36.3%, 11.5%, and 22.3% for the year.

Active foreign large growth funds had $9🌠.2 billion of fourth-quarter net outflows, pushing 2023 net outflows to $26.98 billion.

Conversely, small blend, foreign large blend and large value ETF categories each had $7.65 billion to $13.88 billion in net in🧸flows in the quarter, with each ran🎃king among the top five ETF categories for new investment.

The inflows into large value ETFs reversed repeated outflows throuꦓghout most of 2023, as the market leadership provided by large, growth-or🅷iented technology stocks moderated and broadened during the fourth quarter.