October 25, 2018 / 10:47 PM / 22 days ago

UPDATE 1-U.S. fund investors add stock exposure during volatile week -Lipper

 (Adds details on funds, analyst quote, table)
    Oct 25 (Reuters) - U.S. fund investors snapped up shares of
stock funds during the latest week despite wild trading, adding
$4.2 billion to the products, according to Lipper data on
Thursday.
    Demand for stock funds increased during a week when the S&P
500 benchmark erased its gains for the year, partly as
more short-sellers demanded more exchange-traded funds (ETFs)
that they could bet against, but also as some investors chose to
buy the dip.
    "It's earnings season and we're seeing some fairly good
numbers come out," said Tom Roseen, head of research services at
Lipper, but he noted the market has also had a strong run for a
decade.
    "It's been going up and up, and we need a breather."
    S&P 500 third-quarter earnings are up 23.6 percent over the
year prior, with four-fifths of companies' profits sitting above
Wall Street's expectations, according to Refinitiv data.
    Technology sector stock funds pulled in $904 million during
the week ended Oct. 24, the most cash since June, even as top
tech names took a beating during the sell-off, Lipper said. The
research service's data estimates sales activity in U.S.-based
mutual funds and ETFs.
    Bond funds remain under pressure from rising rate
expectations. Taxable bond funds posted $4.5 billion in
withdrawals during the week, marking a fifth consecutive week of
money being pulled out.
    High-yield bond funds, which are more speculative and
thought to be a leading indicator of interest in stocks, posted
$2.4 billion in withdrawals during the week.
    The following is a breakdown of the flows for the week,
including mutual funds and ETFs:
 Sector                    Flow      Pct of    Assets     Count
                           Change    Assets    ($ blns)   
                           ($ blns)                       
 All Equity Funds          4.224     0.06      6,844.077  12,223
 Domestic Equities         5.249     0.10      4,885.833  8,670
 Non-Domestic Equities     -1.025    -0.05     1,958.244  3,553
 All Taxable Bond Funds    -4.505    -0.16     2,764.686  6,048
 All Money Market Funds    6.413     0.23      2,752.410  1,038
 All Municipal Bond Funds  -0.495    -0.12     423.311    1,436
 
 (Reporting by Trevor Hunnicutt in Washington
Editing by Matthew Lewis and Chris Reese)
  
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