FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York, U.S., June 19, 2019. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) – Investors pulled barely greater than $5 billion out of mutual funds and exchange-traded funds that maintain U.S. stocks final week, ending what had been the most important rush into home stocks since 2016, in response to knowledge launched Wednesday by the Investment Company Institute.
The retreat from the U.S. inventory market got here after investors had pushed $17.9 billion into funds that maintain home stocks over the 2 earlier weeks, and was the primary transfer away from U.S. stocks because the $eight.2 billion decline in internet belongings through the week that ended June 5.
Investors have pulled a complete of $35.6 billion out of U.S. inventory funds because the begin of the yr regardless of a rally that has pushed the S&P 500 up greater than 19% to new report highs. The transfer has been fueled largely by expectations that the Federal Reserve will reduce rates of interest, making equities extra engaging by decreasing firm and shopper borrowing prices.
Bond funds continued to rake in new belongings regardless of the prospect of decrease rates of interest. Taxable and municipal debt funds introduced in barely greater than $10.5 billion in new belongings, persevering with a streak by which the class has pulled in $213.four billion because the starting of the yr.
World stocks, in the meantime, misplaced $three.four billion in internet outflows, leaving the class down almost $13.1 billion for the yr up to now.
Reporting by David Randall; Editing by David Gregorio