April 18, 2019 / 9:16 PM / 3 months ago

UPDATE 2-Stock ETFs, corporate bonds, junk debt enjoy another week of inflows

 (Adds quotes from head of research services at Lipper; table)
    By Jennifer Ablan
    April 18 (Reuters) - Investors' appetite for risk was on
display yet again this week with huge cash inflows into
U.S.-based stock exchange-traded funds, corporate bond funds and
high-yield "junk" bond portfolios, according to Refinitiv's
Lipper research service data on Thursday.
    U.S.-based investment-grade corporate bond funds attracted
more than $2.3 billion in the week ended Wednesday, extending
their weekly inflow streak since late January, Lipper said.
U.S.-based high-yield junk bond funds attracted more than $1.1
billion in the week ended Wednesday, their sixth consecutive
week of inflows, Lipper said.
    Stock exchange-traded funds (ETFs) attracted about $7.35
billion of inflows, Lipper said. Investors in exchange-traded
funds are thought to represent institutional investors,
including hedge funds. Mutual funds are thought to represent
retail investors. U.S. stock mutual funds posted cash
withdrawals of more than $1.84 billion, Lipper added. 
    Tom Roseen, head of research services at Lipper, said a
"tale of two cities" still exists within equities. 
    "Mom and Pop are still net sellers of equity funds,
withdrawing $1.8 billion for the week, while (institutional
investors) continue to pad the coffers of equity ETFs," Roseen
said. "But for the 14th consecutive week, the average fund
investor remained enamored by fixed-income funds, pouring in
roughly $1.7 billion this week."
    All told, Roseen said investors put money to work, partly
evident in the cash withdrawals from money-market funds.
Investors yanked cash from money funds to pay for taxes but they
also felt compelled to put money to work in rising markets, he
said. U.S.-based money market funds posted $54.5 billion in
outflows in the week ended Wednesday, their largest cash
withdrawal since August 2011. 
    "I am attributing that to tax season and investors’ moves
back into bonds and equity funds," Roseen said. 
    Outside the United States, U.S.-based emerging market funds
attracted more than $417 million in the week ended Wednesday,
extending their weekly inflow streak since early January,
according to Lipper. U.S.-based international funds attracted
$1.22 billion in the week ended Wednesday, their first inflows
since mid-March, Lipper said. 
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
 Sector                  Flow       Pct of   Assets     Count
                         Change     Assets   ($ blns)   
                         ($ blns)                       
 All Equity Funds        5.507      0.08     7,264.112  11,745
 Domestic Equities       4.543      0.09     5,170.972  8,376
 Non-Domestic Equities   0.963      0.05     2,093.140  3,369
 All Taxable Bond Funds  3.678      0.13     2,844.984  5,804
 All Money Market Funds  -54.502    -1.84    2,914.630  1,009
 All Municipal Bond      0.679      0.15     443.213    1,32
 Funds                                                  
 
 (Reporting by Jennifer Ablan; Editing by Lisa Shumaker and
Leslie Adler)
  
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