FILE PHOTO: Traders work on the ground on the New York Stock Exchange (NYSE) in New York, U.S., July 29, 2019. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) – Investors jumped again into mutual funds and exchange-traded funds that maintain U.S. shares final week by sending roughly $11.eight billion in internet belongings into the class, the best weekly surge into home equities since early June, in line with knowledge launched Wednesday by the Investment Company Institute.
The cash flowing into stock funds got here because the Federal Reserve lower rates of interest final week as anticipated, serving to additional a rally that has pushed the benchmark S&P 500 stock index up 18.5% since the start of the 12 months.
Over the final two weeks, buyers have despatched practically $20 billion into U.S. stock funds.
Despite these positive aspects, U.S. fairness funds have misplaced a complete of practically $84 billion for the 12 months up to now. Instead, buyers have continued to hunt the protection of bond funds, which garnered a further $9.three billion in new belongings final week. For the 12 months up to now, bond funds have pulled in a internet of practically $306 billion in new belongings.
World stock funds, in the meantime, misplaced practically $1.eight billion in outflows, persevering with a streak wherein buyers have pulled practically $41 billion from the class since the beginning of the 12 months.
Reporting by David Randall; Editing by Bernadette Baum