The above chart illustrates the monthly net flows into mutual funds and ETFs for the U.S. equity, taxable bond and non-traditional bond categories over the last 36 months. Despite a +20% three year annual return of the S&P 500, investors are still piling more money into the bond market than into equities. What makes this remarkable is the fact that interest rates are at near record lows but investors are not afraid of investing in fixed income. Over the last 36 months, Morningstar estimates net inflows into the taxable bond category were $526B compared to just $98B for U.S. equities. Within the taxable bond category, the non-traditional universe is growing and has comprised 15% of the inflows. Visit to learn about Clark Capital’s non-traditional bond funds.
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