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BOND FUNDS: November's net deposits of $23 billion were down from $29.7 billion that came in during October. Last month's total came mostly from taxable bond funds. Those funds, which primarily invest in corporate bonds, attracted a net $18 billion. An additional $5 billion was deposited into municipal bond funds, which invest in bonds issued by state and local governments. Year-to-date, bond funds of all types have attracted $305 billion in new cash, exceeding the full-year totals from 2011 and 2010. Strategic Insight says net deposits into bond funds have topped $1 trillion since the 2008 financial crisis. EXCHANGE-TRADED FUNDS: Investors in November deposited a net $14 billion into ETFs, which bundle together investments in a particular market index. That's up from $2.9 billion in October. A net $4 billion was deposited last month into ETFs investing in U.S. stocks, while a net $5 billion was added to foreign stock ETFs. Another $5.5 billion was added to ETFs investing in bonds. Over the first 11 months of the year, net deposits into all ETFs total $152 billion. It's the sixth-consecutive year that ETFs have attracted more than $100 billion in new cash. Unlike mutual funds, ETFs can be traded during daily sessions just like stocks. They continue to grow much faster than mutual funds. However, assets in mutual funds are still about seven times larger than the total in ETFs, excluding money-market mutual funds. MONEY-MARKET FUNDS: A net $72 billion was deposited into these funds in November, their highest monthly intake since December 2008, during the financial crisis. Money-market mutual funds are designed to be safe harbors where investors can temporarily park cash and quickly access it when needed. Yet their appeal has been reduced because returns have been barely above zero
-- they're now averaging 0.02 percent -- for about three years. Money fund returns are closely tied to interest rates, which are ultra-low because the economic recovery remains fragile.
[Associated
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