| NEW YORK, March 15
NEW YORK, March 15 Investors worldwide poured
$10.87 billion into funds that hold U.S. stocks in the latest
week, with nearly all of the cash flowing into exchange-traded
funds as the Dow Jones industrial average extended its
record-breaking rally, data from EPFR Global showed on Friday.
The flows into funds that hold U.S. stocks in the week ended
March 13 dominated total inflows of $14.1 billion into all
equity funds, the Cambridge, Massachusetts-based fund-tracking
firm said. The inflows into U.S. stock funds are the most in six
The high demand showed that investors made opportunistic
bets on U.S. stock indexes as the Dow continued to mark
record closing highs every day of the reporting period, after
first breaking through the prior record on March 5.
"This latest rally has become a big momentum story," said
Rick Meckler, president of investment firm LibertyView Capital
Management. "It has really begun to pull in a lot of investors
who are afraid they'll miss the next move up."
The Dow's nine-day winning streak through March 13 marked
the longest consecutive run since November 1996. The benchmark
S&P 500 was about 1 percent away from an all-time
intraday high on March 13.
The Dow was up 1.1 percent over the reporting period, while
the S&P 500 was up 0.85 percent.
Signs of strength in the U.S. economy, including growth in
the labor market and a fall in the jobless rate to a four-year
low of 7.7 percent, and the Federal Reserve's easy monetary
policy have advanced the rally in stocks.
Global equity funds, which hold a diverse portfolio of world
stocks, attracted $2.2 billion in new cash over the reporting
period. The funds have yet to redeem money to investors on a
weekly basis this year, EPFR Global said.
Funds that hold Japanese stocks also won fans with inflows
of $1.95 billion. Emerging market stock funds, however, saw
outflows of $585 million, after modest inflows of $102 million
the prior week.
The MSCI world equity index was up just 0.34
percent over the reporting period.
U.S. bond funds attracted inflows of $1.69 billion, the
least in five weeks. Overall, bond funds worldwide took in $3.03
billion after attracting $4.5 billion the prior week.
High-yield "junk" bond funds gained $1.22 billion from
investors globally, a fourth straight week of inflows. That was
down from inflows of $1.9 billion the previous week.
"High-yield is a risk-on trade," said Jim Awad, managing
director at Zephyr Management in New York. "I would expect
high-yield bonds and stocks to act very similarly to each
Emerging market bond funds attracted $557 million in new
money, up modestly from the prior week's inflows of $409
The benchmark 10-year Treasury was down in price to yield
2.06 percent toward the middle of the week. On Friday, the price
of the 10-year rose slightly to yield 2 percent following
declines in bank shares (nL1N0C76MD).
Money market funds, which are low-risk vehicles that invest
in short-term securities, suffered outflows of $7.1 billion over
the weekly period.
"There is some rotation out of money market funds and into
risk assets such as high-yield and common stocks," Awad of
Zephyr Management said.