July 3, 2019 / 3:46 PM / 2 months ago

Fund investors retreat from U.S. stocks as S&P 500 hits records

    By David Randall
    NEW YORK, July 3 (Reuters) - Investors pulled slightly more
than $5 billion out of mutual funds and exchange-traded funds
that hold U.S. stocks last week, ending what had been the
largest rush into domestic stocks since 2016, according to data
released Wednesday by the Investment Company Institute. 
    The retreat from the U.S. stock market came after investors
had pushed $17.9 billion into funds that hold domestic stocks
over the two previous weeks, and was the first move away from
U.S. stocks since the $8.2 billion decline in net assets during
the week that ended June 5. 
    Investors have pulled a total of $35.6 billion out of U.S.
stock funds since the start of the year despite a rally that has
pushed the S&P 500 up more than 19% to new record highs. The
move has been fueled largely by expectations that the Federal
Reserve will cut interest rates, making equities more attractive
by lowering company and consumer borrowing costs. 
    Bond funds continued to rake in new assets despite the
prospect of lower interest rates. Taxable and municipal debt
funds brought in slightly more than $10.5 billion in new assets,
continuing a streak in which the category has pulled in $213.4
billion since the beginning of the year. 
    World stocks, meanwhile, lost $3.4 billion in net outflows,
leaving the category down nearly $13.1 billion for the year to
date. 
    
     The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds: 
                     6/26/1  6/19/19  6/12/19  6/5/19   5/29/19
                          9                            
 Equity              -8,440   10,124    5,040  -9,636    -5,132
           Domestic  -5,028   11,679    6,195  -8,210    -4,684
           World     -3,413   -1,555   -1,156  -1,427      -449
 Hybrid              -1,848     -156   -1,282  -1,017    -1,191
 Bond                10,531    7,932   11,942   4,614     4,246
           Taxable    8,013    6,342   10,661   3,154     2,701
           Munis      2,517    1,590    1,281   1,460     1,545
 Commodity            1,703      389      317     681       157
 Total                1,945   18,289   16,017  -5,359    -1,920
 
 (Reporting by David Randall; Editing by David Gregorio)
  
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