July 31, 2019 / 4:17 PM / 19 days ago

Record highs in U.S. stock market not enough to attract fund investors

    By David Randall
    NEW YORK, July 31 (Reuters) - Investors retreated from the
U.S. stock market last week despite the benchmark S&P 500
reaching new record highs, pulling nearly $9.1 billion from
mutual funds and exchange-traded funds that hold domestic
stocks, according to data released Wednesday by the Investment
Company Institute. 
    The move away from the U.S. market came on the heels of 
$1.1 billon in inflows the week before, continuing a pattern in
which the outsized gains in S&P 500 have been unable to attract
investors en masse. The benchmark index is up more than 20% for
the year to date, thanks in part to expectations of at least one
equity-friendly interest rate cut by the Federal Reserve this
year. Over the same time, investors have pulled nearly $67
billion out of domestic stock funds. 
    Instead, investors continued to pile into fixed income by
sending $10.4 billion into taxable and municipal bond funds,
extending a streak of positive inflows over every full week of
the year that has brought more than $255 billion into the
category. 
    World stock funds, meanwhile, continued a 9-week losing
streak by dropping slightly more than $1 billion in assets.
Investors have pulled approximately $20.5 billion from the
category since the start of the year. 
    
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:     
               7/24/19  7/17/19  7/10/19   7/2/19  6/26/19
 Equity        -10,060     -719    1,377  -28,756   -8,827
    Domestic    -9,045    1,113    2,382  -25,153   -5,417
    World       -1,015   -1,831   -1,005   -3,603   -3,410
 Hybrid           -776     -170      -46     -560   -1,947
 Bond           10,407   11,100    9,858   10,437   10,528
    Taxable      7,696    8,567    7,694    8,811    8,011
    Municipal    2,711    2,533    2,164    1,626    2,517
 Commodity       1,196      237      208      143    1,703
 Total             767   10,448   11,397  -18,735    1,456
 

    

 (Reporting by David Randall; Editing by Jennifer Ablan and Nick
Zieminski)
  
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