Tags: Lipper | Cash | ETFs | Funds

Lipper: Cash Floods into ETFs, Trickles into Retail Stock Funds

Thursday, 18 September 2014 06:10 PM

Investors in U.S.-based funds added a net $6.7 billion into stock funds in the week ended Sept. 17, with about 90 percent of the total going into stock exchange-traded funds (ETFs), data from Thomson Reuters' Lipper service showed on Thursday.

The inflows marked the sixth straight week of net inflows into the funds.

Stock mutual funds attracted $646 million of the total, while ETFs drew $6.1 billion.

Stock mutual funds are commonly purchased by retail investors, while exchange-traded funds are thought to attract institutional investors. The diverging habits of institutional and retail investors this week extended a pattern of fund flows for much of this year.

"Your ETF investor is a bit more speculative, and they're willing to take on risk and move money around where they see opportunity," said Jeff Tjornehoj, head of Americas research at Lipper. "Mutual fund investors, they're getting cautious, they're concerned. They're just not finding enough reason to be aggressive or even optimistic."

The four-week moving average for mutual fund investors into stock funds fell to an outflow of $124 million. In contrast, the four week moving average for investors in stock ETFs was an inflow of $4.7 billion.

The S&P 500 index rose 0.29 percent over the week from Sept. 10 to Sept. 17. That index has hit 34 records so far in 2014, supported by an ongoing pledge by the U.S. Federal Reserve to keep interest rates low.

Taxable bond funds posted net outflows of $2.6 billion, the largest such outflows since early August. Riskier corporate high-yield bond funds posted net outflows of $1.2 billion.

Money market funds saw net outflows of $12.6 billion, their largest since mid June.

Emerging market equity funds posted outflows of $4.4 million, their first net outflows since late June. Emerging market debt funds attracted $85 million in net new cash.

European equity funds saw net outflows of $277 million.

© 2019 Thomson/Reuters. All rights reserved.

   
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Investors in U.S.-based funds added a net $6.7 billion into stock funds in the week ended Sept. 17, with about 90 percent of the total going into stock exchange-traded funds (ETFs), data from Thomson Reuters' Lipper service showed on Thursday.
Lipper, Cash, ETFs, Funds
312
2014-10-18
Thursday, 18 September 2014 06:10 PM
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