NEW YORK (Reuters) – U.S.-based junk bond funds posted $703 million of outflows for the week ended Wednesday, their seventh straight week of money withdrawals, Lipper knowledge confirmed on Thursday.
But greater up within the credit-quality spectrum, U.S.-based investment-grade company bond funds attracted $1.37 billion in new money, a second consecutive week of inflows, Lipper added.
U.S.-based fairness funds attracted $13.three billion of internet money for the week ended Wednesday, although the bulk of these flows went into U.S.-based exchange-traded funds, Lipper stated.
U.S.-based fairness ETFs attracted $13.6 billion of inflows, whereas U.S.-based mutual funds posted $295 million of outflows, Lipper stated. Overall, U.S.-based home funds attracted $9.four billion of inflows, after three straight weeks of money withdrawals.
“Investors appeared to be cautiously optimistic ahead of Federal Reserve Chair Powell’s testimony to Congress but then became spooked by his, what some people are calling,‘hawkish’ tone,” stated Tom Roseen, head of analysis providers at Thomson Reuters Lipper.
Jerome Powell gave his first testimony because the Fed chair earlier than Congress on Tuesday.
“But from the flows into equity ETFs, we can see that many investors are cheering the idea of a stronger economy and perhaps rotating into those securities that benefit when rates increase – banks and the like – and increasing economic conditions,” Roseen stated.
Roseen stated whereas home ETFs took in cash, typical home funds have been internet redeemers. The common retail investor continued to shun large-cap shares, whereas padding the coffers of worldwide fairness funds.
Indeed, U.S.-based worldwide equities funds attracted $four.2 billion of inflows for the week ended Wednesday, a ninth consecutive week of inflows, in response to Lipper knowledge. U.S.-based rising markets fairness funds attracted $1.5 billion of inflows for the week ended Wednesday, their 10th consecutive week of inflows, Lipper added.
U.S.-based European fairness funds attracted $117 million for the week ended Wednesday, their sixth straight week of inflows, Lipper stated.
Reporting by Jennifer Ablan; Editing by Lisa Shumaker and Leslie Adler