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BOND FUNDS: Net deposits of $22 billion in February fell from $42 billion in January. Last month's total came mostly from taxable bond funds. Those funds, which primarily invest in corporate bonds, attracted almost $20 billion. Nearly $3 billion was deposited into municipal bond funds, which invest in bonds issued by state and local governments. Net deposits into bond funds have topped $1 trillion since the 2008 financial crisis, including more $300 billion last year. Bonds typically generate smaller long-term returns than stocks, but with less chance of short-term losses. EXCHANGE-TRADED FUNDS: Investors in February deposited a net $8 billion into ETFs, which bundle together investments in a particular market index. That's down from $30 billion in January. A net $2 billion was deposited last month into ETFs investing in U.S. stocks, while a net $4 billion was added to foreign stock ETFs. Another $1.5 billion was added to ETFs investing in bonds. ETFs have attracted more than $100 billion in new cash for the past six years in a row, growing at a far more rapid pace than mutual funds. 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.
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