Safe-haven Remains Popular Amid Cyclical Stock Turnover, March Cash Flows Show

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Investors are not abandoning the safe-haven plays that have worked in the stock market during the coronavirus pandemic, even as they make a long-awaited turnover in assets likely to benefit from the economic recovery, according to a report on cash flows. of March. The report, prepared by data provider Refinitiv Lipper for MarketWatch, shows that the multi-cap value fund category made the most money in March, followed by emerging market funds. Also among the categories with the largest inflows: large-cap value funds and financial services funds.

Still, S&P 500 index funds ranked third on the list, and US Treasury general funds eleventh, only missing a spot in the top ten. “I think people are still worried,” said Tom Roseen, Refinitiv Lipper’s head of research services. “They are looking for treasures for safety.” RATING INCOME ETF Multi-Cap Value Funds $ 9.1 billion Emerging Markets Funds $ 8.5 billion S&P 500 Index Funds $ 6.5 billion Basic Multi-Cap Funds $ 5.2 billion Equity Income Funds $ 5.2 billion Funds of large cap value $ 4.9 billion Financial services funds $ 4.4 billion Natural resource funds $ 4.1 billion Basic small cap funds $ 3.7 billion Industrial funds $ 3.5 billion Source: Refinitiv Lipper Utilities funds raised the best performance, likely due to massive power outages across much of the southern United States, followed by MLP energy funds and a swath of value funds: small cap, multi-tier, and mid-cap. But when the data is sorted by individual fund returns, not just categories, an intriguing picture emerges. The best performers are funds related to construction, manufacturing or production, or the raw materials used in those processes, as indicated in the following table. ETF One month return Dry bulk shipping Breakwave ETF BDRY, + 1.56% 30.9% VanEck vectors Steel ETF SLX, + 2.38% 14.9% Invesco S&P SmallCap Value with Momentum ETF XSVM, + 1.16 % 13.9% SPDR S&P Homebuilders ETF XHB, +1.13% 13.5% Pacer US Cash Cows 100 ETF COWZ, + 1.05% 13.2% iShares US Home Construction ETF ITB, + 1.21% 12.9% SPDR S&P Retail ETF XRT, + 1.07% 12.5% ​​Invesco S&P SmallCap 600 Revenue ETF RWJ, + 0.94% 12% First Trust Utilities AlphaDEX Fund FXU, + 0.94% 11.8% Invesco S&P 500 Equal Weight Utilities ETF RYU, + 1.17% 11.6% Source: Refinitiv Lipper Also Returns Double Digit Percentage Gains: SPDR S&P Metals & Mining ETF XME, Aberdeen Standard Physical Palladium Stock ETF PALL, and more. That’s a classic early cycle phenomenon, Roseen said in an interview. “I’m surprised it didn’t take off sooner,” he said. Roseen pointed to another conclusion about investor behavior in the data. “People are not chasing profit, they are looking to the future.” One example is the emerging markets category, which made $ 8.5 billion but posted flat returns.