September 12, 2018 / 4:12 PM / 9 days ago

U.S. mutual fund investors flee domestic stocks in latest week -ICI

    NEW YORK, Sept 12 (Reuters) - U.S. mutual-fund investors
sprinted out of domestic stocks at the fastest pace in nine
weeks as trade talks seemed to deteriorate and social media
executives were grilled by lawmakers, Investment Company
Institute (ICI) data showed on Wednesday.
    Mutual fund investors pulled $8.1 billion from domestic
stock funds during the week ended Sept. 5, while exchange-traded
funds (ETFs) focused on the same market attracted $1.1 billion,
the trade group said.
    ETFs are heavily trafficked by quick-trading investors while
mutual funds are more exclusively used by long-term retail
investors.
    During the latest week, Canada and the United States
concluded trade talks without resolution, a report suggested
that the United States could impose even more tariffs on Chinese
goods and Facebook Inc and Twitter Inc
executives defended their companies before skeptical U.S.
lawmakers.
    Despite record-high U.S. corporate earnings, investors
remain skittish around domestic stocks.
    Overall, including both mutual funds and ETFs, bond funds
attracted $3.5 billion, marking their 29th straight week pulling
in cash. Stock funds posted $5.5 billion in withdrawals, the
lowest figure in nine weeks, according to the ICI.
    Closely watched bond fund manager Jeffrey Gundlach on
Tuesday said global economic growth is slowing, but stopped
short of calling for a recession. He said he would avoid putting
new money in the market into the S&P 500 despite its
relatively strong performance versus international indexes.

    Commodity funds, including those invested in gold, recorded
$411 million in withdrawals. It is the sixth straight week of
outflows for those products and comes as a rising dollar
this year has hurt demand for gold, which is priced in
dollars.
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
                 8/29    8/22    8/15     8/8  8/1/2018
 Equity          -684   3,021     779  -1,667    -3,011
    Domestic     -495   1,408      12  -3,408    -2,130
    World        -189   1,613     767   1,741      -882
 Hybrid        -1,367  -1,487  -1,479  -1,450    -2,271
 Bond           4,416   4,596   1,675   6,857     5,844
    Taxable     4,142   4,065   1,013   6,135     5,681
    Municipal     273     531     662     723       163
 Commodity       -388    -532    -674    -450      -101
 Total          1,977   5,598     301   3,289       461
 
 (Reporting by Trevor Hunnicutt
Editing by James Dalgleish)
  
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