FUNDFLOWS INSIGHT REPORT LIPPER RESEARCH SERIES

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1 FUNDFLOWS INSIGHT REPORT LIPPER RESEARCH SERIES 31, 2018 Mutual Fund Investors Duck for Cover, While APs Keep the Pedal to the Metal in December For the third month in four, mutual fund investors were net redeemers of fund assets, withdrawing $94.9 billion from the conventional funds business for December. For the third month running, fixed income funds (-$62.4 billion for December, their largest monthly net outflows since June 2013) witnessed net outflows, while for the eighth month in a row, investors were net redeemers of stock & mixed-asset funds (-$115.4 billion). Money market funds (+$63.1 billion) witnessed the only net inflows. For the sixth month running, authorized participants (APs) were net purchasers of ETFs, injecting $50.1 billion for December. APs were net purchasers of stock & mixed-asset ETFs (+$35.2 billion) and fixed income ETFs (+$14.9 billion). However, for the third month in a row, APs were net redeemers of Sector Equity ETFs (-$10.6 billion for December). TABLE 1 ESTIMATED NET FLOWS BY MAJOR FUND TYPES, VERSUS 2018 ($BIL) Stock & Mixed Equity Funds Bond Funds Money Market Funds TOTAL TABLE 2 ESTIMATED NET FLOWS OF MAJOR EQUITY FUND TYPES, VERSUS 2018 ($BIL) USDE Funds Sector Equity Funds World Equity Funds Mixed-Asset Funds Alternatives Funds TOTAL Mutual Fund Investors Duck for Cover, While APs Keep the Pedal to the Metal in December EXECUTIVE SUMMARY For the third month in four, investors were net sellers of mutual fund assets, withdrawing $94.9 billion from the conventional funds business (excluding ETFs, which are reviewed in the section below) for December. Investors shrugged off a Goldilocks November nonfarm payrolls report and focused on the implications of an imminent government shutdown, declining global growth, and uncertain U.S./ China trade relations, pushing U.S. stocks deep into the red for the month. For the third month in a row, the fixed income funds macro-group witnessed net outflows, handing back $62.4 billion for the month. And for the eighth consecutive month, stock & mixed-asset funds witnessed net outflows (-$115.4 billion for December, their largest monthly net outflows since at least January 2008), while money market funds (+$63.1 billion, for their third consecutive month of inflows) witnessed the only net inflows of the three broad-based macro-groups in the open-end fund universe. At the beginning of December, investors continued to pressure stocks as global trade issues weighed on investor psyche. The three broad-based U.S. indices suffered their worst December start since The Department of Labor reported the U.S. economy added 155,000 new jobs for November, missing analyst expectations of 190,000. The unemployment rate held steady at 3.7%, but hourly earnings showed a 3.1% year-over-year rise, their largest increase since As expected, on December 18 the Federal Reserve Board hiked its key lending rate 25 basis points (bps) to a range of 2.25% to 2.50%, but lowered expectations for hikes in 2019 from three to two. Nonetheless, the Dow experienced another day of volatility, swinging 900 points on the day to once again finish in negative territory. Toward month-end and on low holiday volume, stocks posted their first weekly gain for December, with the S&P 500 logging a 2.9% rise for the week. Investors appeared to ignore the unresolved government shutdown and a 0.7% decline in November pending homes sales. U.S. stocks finished the month on a positive note, with the Dow rising points on December 31 after President Donald Trump tweeted that he and Chinese leader Xi Jinping made big progress in trade talks over the weekend, but the average equity fund still finished down 7.60% for the month. Authored by: TOM ROSEEN HEAD OF RESEARCH SERVICES LIPPER 1

2 EQUITY FUNDS UNITED STATES DIVERSIFIED EQUITY (USDE) FUNDS For the eighth consecutive month, USDE Funds witnessed net outflows (-$31.3 billion for December, their largest monthly net outflows since December 2017). Once again, the only attractor of assets in the 4x3-matrix subgroup for the month was Multi-Cap Core Funds (+$11.2 billion). Investors gave a cold shoulder to growth-oriented funds (-$21.3 billion) and largecap funds (-$18.7 billion). Lipper s Large-Cap Growth Funds classification (-$9.7 billion) suffered the largest net redemptions of the macro-classification, bettered by Multi-Cap Growth Funds (-$5.5 billion). For the second month in three, the non-4x3-matrix subgroup experienced net inflows (although only to the tune of +$0.7 billion for December), with S&P 500 Index Funds experiencing the only net purchases (+$5.0 billion for December). Year-to-date, USDE Funds witnessed $202.5 billion of net redemptions. TABLE 3 ESTIMATED NET FLOWS OF 4X3-MATRIX USDE FUNDS, VERSUS 2018 ($BIL) VALUE CORE GROWTH Large-Cap Multi-cap Mid-Cap Small-Cap TOTAL TABLE 4 ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS, VERSUS 2018 ($BIL) Equity Leverage Funds Equity Income Funds Specialty Diversified Equity Funds S&P 500 Index Funds TOTAL

3 EQUITY FUNDS WORLD EQUITY FUNDS Once again, investors turned their backs on international issues in December. For the third month in a row, investors were net redeemers of World Equity Funds, withdrawing a whopping $38.5 billion for the month (their largest since at least January 2008). For the third consecutive month, institutional world equity funds (including variable insurance products) witnessed net outflows (-$23.8 billion). No-load and loaded world equity funds also suffered net redemptions (-$8.9 billion and -$5.8 billion, respectively). For the eighteenth month in a row, Lipper s Global Diversified Equity Funds subgroup (-$8.5 billion for December) witnessed net outflows, while for the third month running the International Diversified Equity Funds subgroup also experienced net outflows handing back $19.2 billion for December. Despite the tumble, International Multi-Cap Core Funds (+$1.8 billion) remained at the top of the World Equity Funds macroclassification. International Large-Cap Value Funds, taking in just $250 million net, was the runner-up for the month, followed by Latin American Funds (+$35,000). At the bottom of the pile, International Large-Cap Growth Funds witnessed the largest net redemptions (-$7.8 billion), bettered by Emerging Markets Funds (-$6.0 billion). The World Equity Funds macro-classification handed back a net $4.7 billion year-to-date. TABLE 5 ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY FUNDS, VERSUS 2018 ($BIL) VALUE CORE GROWTH Large-Cap Multi-Cap Small-/Mid-Cap (No Style) TOTAL (LARGE & MULTI) TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED EQUITY FUNDS, VERSUS 2018 ($BIL) VALUE CORE GROWTH Large-Cap Multi-Cap Small-/Mid-Cap TOTAL TABLE 7 ESTIMATED NET FLOWS OF REMAINING WORLD EQUITY FUND CLASSIFICATIONS, VERSUS 2018 ($BIL) China Region Funds Emerging Markets Funds European Region Funds Global Equity Income Funds India Region Funds International Equity Income Funds Japanese Funds Latin American Funds Pacific Region Funds Pacific ex-japan Funds TOTAL

4 EQUITY FUNDS SECTOR EQUITY FUNDS For the eleventh month in a row, investors gave the Sector Equity Funds macro-classification a cold shoulder for December (-$10.3 billion net). None of the classifications in this group attracted net new money. Utility Funds (-$8 million) and Global Financial Services Funds (-$39 million) handed back the smallest amounts for December. Once again, the Real Estate Funds classification suffered the largest net outflows of the group, handing back slightly more than $1.5 billion for December, bettered by Energy MLP Funds (-$1.4 billion), Science & Technology Funds (-$1.3 billion), and Global Real Estate Funds (-$1.1 billion). Year-to-date, Sector Equity Funds witnessed $40.2 billion of net redemptions. TABLE 8 ESTIMATED NET FLOWS OF SECTOR EQUITY FUNDS, VERSUS 2018 ($BIL) Precious Metals Equity Funds Basic Materials Funds Consumer Goods Funds Commodities Energy Funds - - Commodities General Funds Commodities Specialty Funds - - Consumer Services Funds Energy MLP Funds Financial Services Funds Global Financial Services Funds Global Health/Biotechnology Funds Global Infrastructure Funds Global Natural Resources Funds Global Real Estate Funds Global Science/Technology Funds Health/Biotechnology Funds Industrials Funds International Real Estate Funds Natural Resources Funds Real Estate Funds Specialty/Miscellaneous Funds Science &Technology Funds Telecommunication Funds Utility Funds TOTAL

5 EQUITY FUNDS MIXED-ASSET FUNDS For the ninth month in a row, the Mixed-Asset Funds macro-classification witnessed net outflows, handing back $23.1 billion for December. Convertible Securities Funds and Flexible Portfolio Funds (not shown in the table below) handed back some $0.5 billion and $10.4 billion, respectively, for the month. For the first month in four, the mixed-asset target date funds subgroup witnessed net outflows, handing approximately $1.5 billion for December, while the primarily broker-recommended mixed-asset target allocation funds subgroup for the thirty-second consecutive month witnessed net outflows (-$10.7 billion for December). Ten of the 16 classifications in the subgroups suffered net redemptions for the month, with Mixed-Asset Target Allocation Moderate Funds (-$6.8 billion) witnessing the largest net redemptions, bettered by Mixed-Asset Target 2020 Funds (-$2.2 billion), Mixed-Asset Target Allocation Conservative Funds (-$1.7 billion), and Mixed-Asset Target Allocation Growth Funds (-$1.6 billion). Mixed-Asset Target Funds (+$848 million) attracted the largest net draw of the classifications. Year-to-date, Mixed-Asset Funds handed back $57.5 billion net. ALTERNATIVES FUNDS For the seventh consecutive month, the Alternatives Funds macro-classification experienced net redemptions (-$12.3 billion for December) as Alternative Global Macro Funds (-$3.7 billion) and Alternative Long/Short Equity Funds (-$2.7 billion) witnessed the largest net outflows of the macro-classification. Alternative Event Driven Funds (+$42 million) attracted the only net inflows of the group. Year-to-date, the Alternatives Funds macro-classification handed back $30.7 billion net. TABLE 9 ESTIMATED NET FLOWS OF TARGET DATE AND TARGET RISK FUNDS, VERSUS 2018 ($BIL) Mixed Asset Target 2010 Funds Mixed Asset Target 2015 Funds Mixed Asset Target 2020 Funds Mixed Asset Target 2025 Funds Mixed Asset Target 2030 Funds Mixed Asset Target 2035 Funds Mixed Asset Target 2040 Funds Mixed Asset Target 2045 Funds Mixed Asset Target 2050 Funds Mixed Asset Target Funds Mixed Asset Target Today Funds Mixed Asset Target Alloc Aggres Funds Mixed Asset Target Alloc Conserv Funds Mixed Asset Target Alloc Growth Funds Mixed Asset Target Alloc Moderate Funds Retirement Income TOTAL TABLE 10 ESTIMATED NET FLOWS OF ALTERNATIVES FUNDS, VERSUS 2018 ($BIL) Absolute Return Funds Alternative Active Extension Funds Alternative Equity Market Neutral Funds Alternative Event Driven Funds Alternative Global Macro Funds Alternative Long/Short Equity Funds Alternative Managed Futures Funds Alternative Multi-Strategy Funds Alternative Other Funds Dedicated Short Bias Funds TOTAL

6 FIXED INCOME FUNDS FIXED INCOME FUNDS As a result of the Fed raising its lending rate in December, fund investors continued to give a cold shoulder to bond funds for the third month in a row, withdrawing a net $62.4 billion for December (the largest monthly net outflows since June 2013). On the taxable bond (nonmoney market) funds side (-$60.5 billion), 21 of Lipper s 28 classifications witnessed net outflows, while on the tax-exempt side (-$2.0 billion) 18 of the 20 classifications in the municipal bond funds universe saw net outflows. Investors padded the coffers of Ultra-Short Obligation Funds (+$4.1 billion), Corporate Debt BBB- Rated Funds (+$3.5 billion), and Short U.S. Government Funds (+$1.6 billion). Once again, the Core Bond Funds classification witnessed the largest net redemptions of the group, handing back $15.5 billion for December, bettered by Loan Participation Funds (-$13.7 billion), High Yield Funds (-$7.8 billion), and Core Plus Bond Funds (-$7.2 billion). On the municipal bond funds side, Short Municipal Debt Funds (+$1.8 billion) and High Yield Municipal Debt Funds (+$336 million) witnessed the only net inflows, while Intermediate Municipal Debt Funds (-$1.7 billion) suffered the largest net redemptions of the subgroup. The Fixed Income Funds macro-classification attracted a net $14.7 billion year-to-date. MONEY MARKET FUNDS For the third consecutive month, investors were net purchasers of the Money Market Funds macroclassification, injecting $63.1 billion for December. On the taxable side (+$57.0 billion), U.S. Government Money Market Funds (+$30.0 billion) and Money Market Instrument Funds (+$22.2 billion) took in the largest amounts of net new money of the subgroup, while Institutional U.S. Government Money Market Funds witnessed the largest net outflows for the month (-$6.7 billion). On the tax-exempt side (+$6.1 billion), only one of the five classifications witnessed net outflows Institutional Tax-Exempt Money Market Funds (-$398 million). Tax-Exempt Money Market Funds (+$4.9 billion) witnessed the largest net inflows of the tax-exempt money market fund classifications, followed by California Tax-Exempt Money Market Funds (+$1.1 billion). Year-todate, the Money Market Funds macro-classification took in a net $187.6 billion. TABLE 11 ESTIMATED NET FLOWS OF MAJOR FIXED INCOME FUND TYPES, VERSUS 2018 ($BIL) TAXABLE MUNICIPAL Long-Term Bond Short & Intermediate Money Market TOTAL

7 FUNDFLOWS INSIGHT REPORT LIPPER RESEARCH SERIES 31, 2018 APs Put the Pedal to the Metal in December TABLE 1 ESTIMATED NET FLOWS BY MAJOR ETF TYPES, VERSUS 2018 ($BIL) ETF EXECUTIVE SUMMARY For the sixth month in a row, ETFs overall witnessed net inflows, taking in $50.1 billion for December their largest monthly net inflows since January Authorized participants (APs, those investors who actually create and redeem ETF shares) were net purchasers of stock & mixed-asset ETFs, adding $35.2 billion to equity ETF coffers. And for the second consecutive month, they were net purchasers of bond ETFs injecting $14.9 billion for December. APs were net purchasers of three of the five equity-based ETF macro-classifications: USDE ETFs (+$27.5 billion), World Equity ETFs (+$18.0 billion), and Mixed-Asset ETFs (+$609 million), while being net redeemers of Sector Equity ETFs (-$10.6 billion) and Alternatives ETFs (-$321 million). Investors soured on a lower-than-expected nonfarm payrolls report for November (155,000 new jobs versus the 190,000 estimated by economists), focusing on trade-war rhetoric and declining global growth. Early in the month, stocks witnessed their worst December start since 2008 as the unemployment rate held steady at 3.7%, but hourly earnings showed a 3.1% year-over-year rise, their largest increase since The following week, the Dow Jones Industrial Average (declining 10.17% from its October 3 record high) joined the S&P 500 and NASDAQ in correction territory as stocks plummeted on news that Chinese data showed November industrial output and retail sales missed economists expectations. Investors ignored reports that November retail sales rose 0.2% and U.S. industrial production rose 0.6%. As expected, on December 18 the Federal Reserve Board hiked its key lending rate 25 bps to a range of 2.25% to 2.50%, but lowered expectations for hikes in 2019 to two. By the end of the week, the Dow posted its worst one-week return since 2008 as the government shutdown loomed and the NASDAQ entered bear-market territory (down 21.9% from its most recent market high on August 31). Many analysts believe that a combination of window dressing and bargain hunting, along with the encouraging trade news, provided the shot in arm for equities at month-end. A rise in market volatility, along with the slowing of global growth, lead many investors to bid up safe-haven plays such as gold and Treasury issues. For the month of December, the Treasury curve continued to flatten, with yields rising at the short end of the curve and declining at the long end. The one- and two-month yields witnessed the largest increases for the month rising 13 bps and 12 bps, respectively, to 2.44% and 2.45%, while the three-year yield saw the largest decline 37 bps, to 2.46%. For December, the dollar strengthened marginally against the pound (+0.19%), but weakened against the euro (-1.77%) and the yen (-3.38%). Commodities prices were mixed for the month, with near-month gold prices gaining 4.76% to close the month at $1,278.3/ounce, and with front-month crude oil prices declining 10.84% to close at $45.41/barrel. Authored by: Stock & Mixed Equity ETFs Bond ETFs TOTAL TABLE 2 ESTIMATED NET FLOWS OF MAJOR EQUITY ETF TYPES, VERSUS 2018 ($BIL) USDE ETFs Sector Equity ETFs World Equity ETFs Mixed-Asset ETFs Alternative ETFs TOTAL TOM ROSEEN HEAD OF RESEARCH SERVICES LIPPER 7

8 EQUITY ETFs UNITED STATES DIVERSIFIED EQUITY (USDE) ETFs For the ninth month running, the USDE ETFs macroclassification experienced net inflows, taking in $27.5 billion for December. Lipper s broad-based 4x3-matrix subgroup witnessed net inflows for the tenth month in a row, taking in $20.7 billion, with Multi-Cap Core ETFs (+$5.9 billion), Large-Cap Core ETFs (+$3.8 billion), and Multi-Cap Value ETFs (+$3.4 billion) experiencing the largest net inflows of the subgroup. For the third month in a row, multi-cap ETFs (+$9.2 billion) experienced the largest net inflows of the four capitalization groups, while mid-cap ETFs (+$742 million) were the group s relative laggards. Once again, core-oriented ETFs (+$11.8 billion) attracted the largest net inflows of the valuation subgroups for the month, while their value- and growth-oriented counterparts took in $6.6 billion and $2.3 billion, respectively. Small- Cap Growth ETFs (-$200 million) witnessed the largest net outflows of the macro-classification. Outside the 4x3-matrix classifications, Equity Income ETFs (+$5.6 billion) witnessed the largest net inflows of the macroclassification, while S&P 500 Index ETFs (-$108 million) suffered the only net outflows of the subgroup. ishares Russell 1000 Value ETF (IWD) individually witnessed the largest net inflows (+$2.7 billion), while Vanguard 500 Index ETF (VOO) witnessed the largest individual net outflows (-$2.4 billion). Year-to-date, the USDE ETFs macro-classification took in $143.2 billion net. TABLE 3 ESTIMATED NET FLOWS OF USDE 4X3-MATRIX ETFs, VERSUS 2018 ($MIL) VALUE CORE GROWTH Large-Cap 1, , , , ,228.6 Multi-Cap 3, , , ,846.7 Mid-Cap ,125.3 Small-Cap 1, , , TOTAL 6, , , , ,906.7 TABLE 4 ESTIMATED NET FLOWS OF OTHER USDE CLASSIFICATIONS, VERSUS 2018 ($MIL) Equity Leverage ETFs 1, Equity Income ETFs 5, ,934.7 Specialty Diversified ETFs - - S&P 500 Index ETFs ,921.5 TOTAL 6, ,

9 EQUITY ETFs WORLD EQUITY ETFs For the third month in a row, APs were net purchasers of World Equity ETFs, injecting $18.0 billion for December. For the twenty-seventh month running, APs padded the coffers of International Diversified Equity ETFs, purchasing a net $11.7 billion for December. For the fourth consecutive month, APs were also net purchasers of the Global Diversified Equity ETFs subgroup (+$2.7 billion for December). For the third consecutive month, they were net purchasers of the non-3x3-matrix subgroup, injecting $3.6 billion for December. International Multi-Cap Core ETFs, attracting a net $8.9 billion, moved back to the top of the charts for the month, while Emerging Markets ETFs (+$3.5 billion) and Global Multi-Cap Core ETFs (+$2.6 billion) took the number-two and -three spots. Once again, European Region ETFs experienced the largest net redemptions of the macro-classification, handing back $1.2 billion for the month, bettered by Japanese ETFs (-$562 million). Vanguard Developed Markets Index ETF (VEA), with net inflows of $2.1 billion for December, attracted the most individual interest in the macro-classification. ishares MSCI Eurozone ETF (EZU) handed back the largest individual net redemptions (-$757 million). Year-to-date, the World Equity ETFs macro-classification took in $58.8 billion net. TABLE 5 ESTIMATED NET FLOWS OF GLOBAL DIVERSIFIED EQUITY ETFs, VERSUS 2018 ($MIL) TABLE 6 ESTIMATED NET FLOWS OF INTERNATIONAL DIVERSIFIED EQUITY ETFs, VERSUS 2018 ($MIL) VALUE CORE GROWTH Large-Cap Multi-Cap 0.0 2, , ,644.6 Small-/Mid-Cap (No Style) TOTAL (LARGE & MULTI) , , ,589.6 VALUE CORE GROWTH Large-Cap Multi-Cap , , , ,515.0 Small-/Mid-Cap TOTAL , , , ,974.5 TABLE 7 ESTIMATED NET FLOWS OF REMAINING WORLD EQUITY ETF CLASSIFICATIONS, VERSUS 2018 ($MIL) China Region ETFs Emerging Markets ETFs 3, ,112.9 European Region ETFs -1, Global Equity Income ETFs India Region ETFs International Equity Income ETFs Japanese ETFs Latin American ETFs Pacific Region ETFs Pacific ex-japan ETFs 1, TOTAL 3, ,

10 EQUITY ETFs SECTOR EQUITY ETFs For the third month running, Sector Equity ETFs witnessed net outflows handing back $10.6 billion for December, with 17 of Lipper s 27 Sector Equity ETF classifications witnessing net outflows. Commodities Precious Metals ETFs (+$1.4 billion), Utility ETFs (+$677 million), and Precious Metals Equity ETFs (+$613 million) were at the top of the charts for the month, while Financial Services ETFs (-$4.8 billion), Science & Technology ETFs (-$2.4 billion), and Industrials ETFs (-$1.3 billion) suffered the largest net redemptions. SPDR Gold Shares (GLD), taking in a net $1.1 billion, attracted the largest individual draw for December. At the bottom of the individual ETF pile, Financial Select Sector SPDR Fund (XLF) handed back a net $3.3 billion for the month. The Sector Equity ETFs macroclassification took in a net $2.9 billion year-to-date. TABLE 8 ESTIMATED NET FLOWS OF SECTOR EQUITY ETFs, VERSUS 2018 ($MIL) Precious Metals Equity ETFs Basic Materials ETFs Consumer Goods ETFs ,340.3 Commodities Agriculture ETFs Commodities Energy ETFs Commodities General ETFs Commodities Base Metals ETFs Commodities Precious Metals ETFs 1, Commodities Specialty ETFs Consumer Services ETFs -1, Energy MLP ETFs Financial Services ETFs -4, ,306.3 Global Financial Services ETFs Global Health/Biotechnology ETFs Global Infrastructure ETFs Global Natural Resources ETFs Global Real Estate ETFs Global Science/Technology ETFs Health/Biotechnology ETFs -1, ,553.2 Industrials ETFs -1, ,184.1 International Real Estate ETFs Natural Resources ETFs Real Estate ETFs Specialty/Miscellaneous ETFs Science &Technology ETFs -2, ,296.0 Telecommunication ETFs Utility ETFs TOTAL -10, ,

11 EQUITY ETFs ALTERNATIVES ETFs For the second month in three, Alternatives ETFs witnessed net outflows, handing back $321 million for December. APs were net purchasers of Alternative Multi-Strategy ETFs (+$169 million), with Alternative Event Driven ETFs and Alternative Long/Short Equity ETFs experiencing the next largest net inflows of the group (+$81 million and $73 million, respectively). Dedicated Short Bias ETFs (-$699 million) and Alternative Active Extension ETFs (-$24 million) witnessed the largest net outflows of the group. WisdomTree Managed Futures Strategy Fund (WTMF), taking in some $47 million, drew the largest individual net inflows of the macro-classification, while VelocityShares 3x Inverse Natural Gas ETN (DGAZ) handed back $325 million and suffered the largest individual net withdrawals of the group. Alternatives ETFs attracted $3.3 billion net year-to-date. TABLE 9 ESTIMATED NET FLOWS OF ALTERNATIVES ETFs, VERSUS 2018 ($MIL) Absolute Return ETFs Alternative Active Extension Alternative Equity Market Neutral ETFs Alternative Event Driven ETFs Alternative Global Macro ETFs Alternative Long/Short Equity ETFs Alternative Managed Futures ETFs Alternative Multi-Strategy ETFs Dedicated Short Bias ETFs TOTAL

12 FIXED INCOME ETFs FIXED INCOME ETFs For the second month in a row, fixed income ETFs (+$14.9 billion for December) witnessed net inflows. On the taxable bond ETFs side (+$12.8 billion), 18 of the 28 Lipper classifications attracted net new money for the month. Meanwhile, the tax-exempt offerings (+$2.1 billion) reported net inflows into seven of the eight classifications. On the taxable side, net flows into Short U.S. Treasury ETFs (+$9.8 billion) and Core Bond ETFs (+$3.7 billion) beat those of the other classifications. High Yield ETFs (-$2.7 billion) and Loan Participation ETFs (-$1.7 billion) suffered the largest net redemptions of the group. ishares Short Treasury Bond ETF (SHV), with net inflows of $3.4 billion, attracted the largest individual inflows of the group, while ishares Floating Rate Bond ETF (FLOT), handing back some $1.0 billion for December, suffered the largest individual net redemptions. On the tax-exempt side, General Municipal Debt ETFs (+$1.5 billion) attracted the largest net inflows, while California Municipal Debt ETFs handed back the only net outflows of the subgroup (-$20,000). Year-to-date, the Fixed Income ETFs macro-classification took in $85.8 billion net. TABLE 10 ESTIMATED NET FLOWS OF MAJOR FIXED INCOME ETF TYPES, VERSUS 2018 ($MIL) TAXABLE MUNICIPAL Long-Term Bond -2, , , ,094.5 Short & Intermediate 15, , ,657.3 TOTAL 12, , , ,751.8 Refinitiv All Rights Reserved. The Financal and Risk business of Thomson Reuters is now Refinitiv. Lipper FundFlows Insight Reports are for informational purposes only, and do not constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. No guarantee is made that the information in this report is accurate or complete and no warranties are made with regard to the results to be obtained from its use. In addition, Lipper will not be liable for any loss or damage resulting from information obtained from Lipper or any of its affiliates. For immediate assistance, feel free to contact Lipper Client Services toll-free at or via at LipperClientServices@ thomsonreuters.com. For more information about Lipper, please visit our website at financial.tr.com or lipperalphainsight.com Refinitiv