Net inflows into 7games bet:exchange-traded funds (ETFs) and mutual 7games bet:bond funds totaled $151.83 billion in the first quarter. That's almost three times more than the $53.68 billion net inflows—reflecting fund sales minus investors' redemptions—that went into equity funds.

The flows into bond funds occurred despite slight declines in government and 7games bet:investment-grade bond returns during the quarter. Those returns reflected the quarter's 33-7games bet:basis-point (bps) increase in the 10-year U.S. Treasury yield to 4.21%, and corresponding increases in European government bond yields, all of which helped drive yields higher on most fixed-income instruments.

The quarter's bond returns contrasted starkly with strong global equity returns. The S&P 500 Index gained 10.2% in the quarter, with the 7games bet:MSCI All-Country World Index gaining 8.3%.

Active ETFs Gain Market Share

As they have for more than a decade, ETFs during the quarter continued dominating net inflows, compensating for continued outflows from traditional 7games bet:actively managed mutual funds—particularly U.S. stock funds.

Quarterly net inflows into U.S. stock ETFs within 7games bet:Morningstar's traditional ♒style and size par🎶adigm totaled $94.6 billion, whereas investors withdrew a net $69.6 billion from similar U.S. actively managed mutual funds.

The latter category's quarterly net inflows equaled almost 10% of its $576 billion in assets, compared with about 1.8% for the $6.5 trillion passive ETF market and 1% for 7games bet:smart-beta ETFs. In other words, active ETFs drew about 30% of all ETF net inflows🐼 despite accounting for just 7% of the overall ETF mar𒐪ket.

Emerging Markets Flows Shine; Large Growth, Not So Much

The 7games bet:MSCI Emerging Markets Index gained just 2.4% in the quarter, a fraction of the gains enjoyed by 7games bet:developed market stocks. Nevertheless, funds foc෴used on EM stocks were one of the few equity categories among act☂ively managed mutual funds that experienced net inflows.

Actively managed diversified emerging markets equity funds captured $4.8 billion in net inflows in the quarter, with funds managed by Fidelity attracting the majority of that amount.

Large actively managed Growth funds such as 7games bet:Peter Lynch's Fidelity Magellan fund once were consꦍidered the darlings of the mutual fund industry. But the category's assets have fallen to $1.8 trillion during investors' ongoing steady march to cheaper ETFs.

Meanwhile, 7games bet:money market funds attracted $18 billion net inflows during the quarter as yields remained attra🌱ctive. But investors soured on them late in the quarter, withdrawin꧋g a net $92.1 billion in March.