October 9, 2019 / 5:00 PM / 5 days ago

Fund investors dump U.S. stocks as recession worries mount

    By David Randall
    NEW YORK, Oct 9 (Reuters) - Investors retreated from the
U.S. stock market by unloading nearly $11.8 billion from mutual
funds and exchange traded funds that hold domestic equities last
week, as concerns about the strength of the U.S. economy
mounted, according to data released by the Investment Company
Institute on Wednesday.
    The $11.8 billion in outflows came during a week in which
data showed that the U.S. manufacturing sector tumbled to a
10-year low in September, a sign that the trade war between the
United States and China was weighing on the U.S. economy.
    Over the last two weeks, investors have pulled more than $28
billion from U.S. stock funds, the largest pullback since the
beginning of June. For the year to date, investors have pulled
nearly $103 billion out of domestic equity funds.
    At the same time, investors continued to gravitate to the
perceived safety of bonds by sending another $8.5 billion into
the category. For the year to date, investors have directed
about $327.5 billion into bonds. 
    World stock funds lost slightly more than $2 billion in
outflows, making it a 4-week losing streak for the category. For
the year to date, investors have pulled nearly $40 billion out
of world stock funds. 
    
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds: 
    
             10/2/201  9/25/201  9/18/201  9/11/201   9/4/2019
                    9         9         9         9  
 Equity       -13,849   -15,779    10,032     7,551     -4,106
    Domesti   -11,768   -13,957    11,804     8,598     -4,389
    c                                                
    World      -2,081    -1,822    -1,771    -1,047        283
 Hybrid        -1,144    -1,918      -843      -687     -1,132
 Bond           8,543     6,864     9,290    13,021      6,923
    Taxable     6,921     4,587     8,902    11,734      5,707
    Municip     1,622     2,277       387     1,287      1,217
    al                                               
 Commodity        489     2,356       260      -396        914
 Total         -5,961    -8,478    18,740    19,489      2,598
 

 (Reporting by David Randall
Editing by Bill Berkrot)
  
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