November 6, 2019 / 5:05 PM / a month ago

Record highs not enough to lure fund investors to U.S. stocks

    By David Randall
    NEW YORK, Nov 6 (Reuters) - U.S. investors last week pulled
$4.1 billion from mutual funds and exchange-traded funds that
hold domestic stocks, extending a pullback from the U.S.
equities market that has now lasted for five of the last six
weeks, according to data released Wednesday by the Investment
Company Institute. 
    The withdrawals came during a week in which the Federal
Reserve continued its pace of equity-friendly interest rate
cuts, helping propel the benchmark S&P 500 to record highs. Yet
concerns over the trade war between the United States and China
and the possibility of a recession over the next 12 months have
weighed on investor sentiment, pushing investors into the
perceived safety of bonds. 
    For the year to date, investors have pulled nearly $118.5
billion from U.S. stock funds. Over the same time, bond funds
have brought in nearly $366.1 billion in new assets despite
yields that are historically low. The $11.3 billion investors
deposited into the category last week continued a winning streak
for bond funds that began in early August. 
    World stock funds, meanwhile experienced approximately $2.7
billion in outflows, the largest weekly drop since late August.
For the year to date, investors have pulled nearly $46 billion
from the category.
    
    The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds in
millions of dollars: 
    
               10/30/20  10/23/20  10/16/2  10/9/201  10/2/201
                     19        19      019         9         9
 Equity          -6,787    -5,659      755   -10,609   -13,429
    Domestic     -4,100    -4,693    2,698    -9,964   -11,746
    World        -2,687      -967   -1,943      -644    -1,682
 Hybrid            -767      -168     -391      -688    -1,163
 Bond            11,300    10,419   10,473     5,810     8,427
    Taxable       9,635     8,275    8,786     3,856     6,810
    Municipal     1,665     2,144    1,687     1,954     1,617
 Commodity         -319       222     -151       425       489
 Total            3,427     4,814   10,686    -5,061    -5,676
 

    

 (Reporting by David Randall)
  
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