Jan 4 Investors stormed into equities in
December, pouring a record $59.9 billion into U.S.-based
domestic stock exchange-traded funds, TrimTabs Investment
Research said on Wednesday.
The figure tops the previous monthly record of $50.7 billion
set in November.
Stocks have rallied on the potential for lower U.S.
corporate taxes and fewer regulations, after the Nov. 8 election
gave Republicans who support those policies control of the
presidency and the U.S. Congress.
The Russell 2000 has gained more than 15 percent
"U.S. equity ETFs have had inflows on all but six trading
days since the U.S. presidential election, and the buying volume
has been by far the strongest we've ever seen," TrimTabs Chief
Executive David Santschi said in a statement.
"Fund flows tend to be a good shorter-term contrary
indicator, so the post-election buying spree bodes poorly for
TrimTabs' ETF data dates back to 1993, when the first such
funds started trading in the United States.
Overall, investors funneled a record $286 billion into
U.S.-based ETFs in 2016, BlackRock Inc data showed on
Tuesday. Many ETFs are relatively low cost and aim merely to
track the market, not to beat it.
(Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)