1 Year Into Trump Presidency, Investment Funds Show Strong Growth

1 Year Into Trump Presidency, Investment Funds Show Strong Growth

1 Year Into Trump Presidency, Investment Funds Show Strong Growth

$DIA, $SPY, $QQQ, $VXX

Assets managed by US-based funds have grown substantially, led by equity funds, since Donald Trump won the US Presidency 1 year ago.

Though financial markets have been broadly skeptical about the ability of The Trump Presidency to pass significant political reforms since he won the US elections, funds have enjoyed inflows and have seen the value of their holdings rise as global financial markets enjoyed double-digit returns.

As The Trump Presidency approached a 1 year anniversary Wednesday, total net assets under management of US mutual funds including ETFs (exchange-traded funds) climbed 17.66% to $21.1-T over the frame ended 30 September, according to data from Thomson Reuters.

Equity funds were the leaders with assets under management for stock funds seeing the biggest increase over that frame with total assets rising by 20% to $11.4-T as of end-September global stock markets hit new peaks.

US stocks hit fresh record highs Monday with stocks up more than 16% YTD, while an index of high yield US bonds is up by a similar quantum in that frame.

While performance has been a Key driver as rising markets pushed up valuations, inflows have also been robust, especially to passively managed funds as active managers faced another year of fierce competition from their Exchange-Traded counterparts.

Of the $691-B of net inflows that was pumped into US mutual funds over the 1-year frame ended 30 September 2017, about $685-B have gone into passively managed funds.

Of that amount, nearly $500-B have gone into passively managed equity funds, while actively-managed equity funds saw $235-B of outflows during that period.

In the fixed-income space, inflow trends were a bit more evenly matched with actively managed funds seeing $145-B of net inflows compared with $191-B of inflows into bond ETFs in that frame.

Tuesday, the US major stock market indexes finished at: DJIA +8.81 at 23557.23, NAS Comp -18.65 at 6767.79, S&P 500 -0.49 at 2590.64.

Volume:Trade on the NYSE came in at 904-M/shares exchanged

  • NAS Comp +24.7% YTD
  • DJIA +19.0% YTD
  • S&P 500 +15.2% YTD
  • Russell 2000 +10.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.38) Very Bullish (0.71) Bullish (0.42)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.39) Bullish (0.31) Very Bullish (0.52) Bullish (0.33)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.48) Very Bullish (0.50) Very Bullish (0.53)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Very Bearish (-0.55) Very Bearish (-0.55) Bearish (-0.42) Very Bearish (-0.67)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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