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U.S. fund investors snub domestic stocks
November 15, 2017 / 8:23 PM / in 25 days

U.S. fund investors snub domestic stocks

    By Trevor Hunnicutt
    NEW YORK, Nov 15 (Reuters) - U.S. investors dashed into
funds that buy stocks outside the country at the fastest pace
since July, while pulling money out of domestic equities,
Investment Company Institute (ICI) data showed on Wednesday.
    World stock mutual funds and exchange-traded funds attracted
$6.5 billion during the week ended Nov. 8, the 49th straight
week of inflows and the largest haul in 16 weeks, according to
the trade group.
    That compares to $3.7 billion of withdrawals from
domestic-focused stock funds. The data covers only funds based
in the United States.
    U.S.-based bond funds attracted $5.4 billion during the
week, marking their 46th consecutive week of inflows, ICI said.
    The data reinforces a theme in markets this year: U.S.
stocks have scaled new peaks, yet U.S. fund investors are buying
bonds and international stocks in greater amount than equities.
    The S&P 500 has gained 17 percent so far in 2017,
including dividends. It is off about a percentage point from its
closing high this month, on Nov. 8.
    Pimco global economic advisor Joachim Fels said it is wrong
to see investors' moves into bonds this year as defensive.
    "I don't view this as an expression of fear," Fels said at
Reuters Global Investment Outlook Summit in New York on Tuesday.
    "It's moving to the riskier parts of the fixed-income credit
spectrum."
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
               11/8    11/1    10/25   10/18   10/11/2017
 Equity        2,839   -1,624  9,999   12,609  3,407
    Domestic   -3,660  -5,454  5,159   6,968   -1,623
    World      6,499   3,830   4,840   5,641   5,030
 Hybrid        -373    -999    -506    -724    -497
 Bond          5,444   7,450   10,854  9,324   9,144
    Taxable    4,541   7,224   9,942   8,383   8,671
    Municipal  903     226     913     941     473
 Commodity     -153    -242    98      -428    265
 Total         7,757   4,585   20,445  20,781  12,319
 
 (Reporting by Trevor Hunnicutt, Editing by Rosalba O'Brien)
  

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