(Reuters) – Fund buyers piled into U.S.-based equity exchange-traded funds within the week ended Wednesday, following six straight weeks of withdrawals, Lipper knowledge confirmed on Thursday, as buyers equipped for robust quarterly earnings.
The flows confirmed that buyers have been “putting money back into play,” stated Pat Keon, senior analysis analyst at Thomson Reuters Lipper.
ETF buyers put $four.7 billion of the $5 billion in internet inflows to U.S.-based equity ETFs into funds targeted on home shares.
The S&P 500 rose 1.5 % from July 11 to 18 as earnings trickled in from main banks, together with JPMorgan Chase & Co, in addition to railroad CSX Corp and airline United Continental.
Results have been combined, however buyers are nonetheless anticipating market-leading know-how companies and a number of other different sectors to ship double-digit revenue progress over the yr prior, in accordance with Credit Suisse knowledge.
Elevated danger urge for food was additionally evident in withdrawals from U.S.-based money-market funds, which posted $6.5 billion in outflows, after $21 billion in inflows the week prior. Investors use money-market funds to briefly park money.
In the approaching weeks, corporations should reside as much as robust expectations for outcomes and buyers will cope with persevering with disputes between the U.S. and its main buying and selling companions.
Uncertainty over commerce has helped demand for some lower-risk sources of yield. U.S.-based company funding grade bond funds introduced in money for the 19th straight week with $2 billion in deposits.
Municipal bond funds took in $1.2 billion, probably the most money since April 2017.
Reporting by James Thorne; modifying by Diane Craft