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UPDATE 1-ETFs outpacing retail stock funds by wide margin -Lipper
September 18, 2014 / 10:07 PM / 3 years ago

UPDATE 1-ETFs outpacing retail stock funds by wide margin -Lipper

(Adds S&P performance, analyst comments, background)
    By Luciana Lopez
    NEW YORK, Sept 18 (Reuters) - Investors in U.S.-based funds
added a net $6.7 billion into stock funds in the week ended
Sept. 17, 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 that money,
with stock exchange-traded funds drawing in $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.
  
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($Bil)              ($Bil)     
 All Equity Funds          6.733     0.16      4,266.506  10,982
 Domestic Equities         5.821     0.19      3,145.881  7,985
 Non-Domestic Equities     0.912     0.08      1,120.625  2,997
 All Taxable Bond Funds    -2.586    -0.14     1,843.034  5,613
 All Money Market Funds    -12.626   -0.55     2,293.391  1,309
 All Municipal Bond Funds  0.197     0.06      309.223    1,443
 
 (Reporting by Luciana Lopez; Editing by James Dalgleish and
Andre Grenon)

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