💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Risk appetite emerges as U.S.-based equity funds attract $4.4 billion

Published 06/13/2019, 05:40 PM
Risk appetite emerges as U.S.-based equity funds attract $4.4 billion

By Jennifer Ablan

(Reuters) - U.S.-based equity funds attracted $4.4 billion of inflows in the week ended Wednesday, following two consecutive weeks of cash outflows totaling $34 billion, according to Refinitiv's Lipper, as the United States and Mexico struck a deal to avert tariffs.

U.S.-based high-yield junk bond funds - which move in sympathy with equity flows - attracted more than $1.7 billion of inflows in the week ended Wednesday, also following two straight weeks of cash withdrawals, Lipper said.

Tom Roseen, head of research services at Lipper, said it was "definitely a risk-on week" with net new money into corporate investment-grade bond funds of more than $4 billion.

"Interestingly, though, we saw retail investors being net redeemers of equity funds at negative $4.9 billion, while authorized participants were net purchasers of equity ETFs at plus $9.4 billion. So once again it was a tale of two cities," Roseen said.

Mom-and-pop investors "appear to be content sitting on the sidelines until the trade deals are completed, parking cash into the money market funds of more than $12.9 billion," he said.

Mom-and-pop investors are also putting money into select bond fund classifications: corporate investment-grade debt funds of plus-$1.2 billion and municipal bond funds of plus-$887 million, their 23rd consecutive week of net inflows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.