The market uncertainty in the first half of 2022 showed no signs of abating. Significant volatility and the turbulent response to intractable inflation affected flows and dragged down assets for a second consecutive quarter across all three product types. Exchange traded funds (ETFs) and separately managed accounts (SMAs) survived the market downturn with positive growth, while mutual funds (MFs) saw historic outflows.
That being said, this type of MF outflow has occurred before, specifically during the last two major market disruptions, Q4 of 2018 and Q1 of 2020. And on a positive note, ETFs and SMAs have shown a bit more variation in response to market disruptions. For example, ETFs saw strong sales on Rep-as-PM and Firm discretionary programs.
Analysis of MF, ETF and SMA asset and sales data from national broker dealers from BNY Mellon Growth DynamicsSM can identify several key trends for advisors and investment and wealth managers: