The 2013 trend was positive for net flows for both mutual funds and exchange traded funds. For U.S.-registered products, $163.6 billion of positive net flows went into mutual funds, while $141.2 billion moved into ETFs. The 2013 totals were aided by net inflows into equities, with $194.4 billion moving into mutual funds and $137.6 billion into ETFs.
Mutual fund and ETF flows to the short end of the curve are likely to remain positive but volatile in 2014 as investors await more clarity around the Fed's evolving bond-purchase program amid mixed economic signals.
Taxable fixed-income fund sector flows were positive at $20.7 billion, largely because of a strong first quarter. Taxable-fund net flows were actually negative during each of the final three quarters of 2013, reflecting investors' concerns surrounding the Federal Reserve's bond-purchasing program.