NEW YORK (Reuters) – U.S. fund investors began closing the books on 2019 by withdrawing greater than $10.9 billion from mutual funds and exchange-traded funds that maintain home stocks final week, the most important pullback since early October, in response to Investment Company Institute knowledge launched on Wednesday.
The declines marked the 10th out of the final 12 weeks that investors have retreated from the U.S. inventory market regardless of the benchmark S&P 500 touching a collection of document highs.
The index is up greater than 27% for the yr so far, notching its greatest efficiency because the barely greater than 29% annual achieve in 2013, thanks partially to the Federal Reserve’s choice to maintain rates of interest low.
Investors pulled back from overseas stocks as nicely, withdrawing almost $1.three billion from the class. Instead, they continued to hunt the perceived security of bonds, which have rallied in anticipation that the Fed won’t increase charges until the central financial institution sees indicators of persistent inflation.
Bond funds took in almost $10.2 billion in inflows, pushing the yr so far achieve for the class to just about $333.four billion.
Reporting by David Randall; Editing by Richard Chang