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)|