NEW YORK: Investors put $2.3 billion of fresh cash into US-domiciled equity funds in the week ended March 2, with the majority of the cash entering via exchange-traded funds, data from Lipper showed on Thursday. Taxable bonds funds took in $2.5 billion while municipal bond funds had outflows of $1.04 billion, marking a 16th straight week of net redemptions.
Domestic-focused equity funds took in a net $3.03 billion versus inflows of $2.6 billion in the prior week. Non-domestic equity funds had outflows of $730 million, breaking a three-week streak of inflows. The biggest inflow of new money into ETFs went to the SPDR S&P 500 ETF fund, totaling $3.7 billion, reversing some of the $6.5 billion in outflows in the prior week. "We're still hearing stories coming out Libya and its civil war, but it looks like the smart money, or the institutional investors, are voting to invest back in this US via ETFs," said Tom Roseen , senior analyst at Lipper, a Thomson Reuters service.
When the ETFs are taken out of the picture, inflows into equity funds totaled just $233 million, the lowest inflow of cash in this category since December and well under the 13-week average of $2.5 billion. "The conventional fund business, or ex-ETFs, are kind of cooling their heels. One week doesn't make a trend but over the last three months there's been a lot of money coming in and maybe the seasonal factors pushed those numbers higher than on a regular weekly basis," said Roseen.
"They are not running away but they are concerned about the global economy and oil prices leading to the low levels on inflows," he said. Emerging market equity funds had outflows $866 million, marking a sixth straight week of net redemptions as the political turmoil in North Africa and the Middle East continued to unfold. Investors did put fresh cash into conventional emerging market equity funds -- $45.8 million -- however it was the ETFs that let the sector down for an eighth week in a row. This category had net outflows of $912 million. Much of that came from one fund, the iShares: MSCI Emerging Market ETF.
Domestic-focused equity funds took in a net $3.03 billion versus inflows of $2.6 billion in the prior week. Non-domestic equity funds had outflows of $730 million, breaking a three-week streak of inflows. The biggest inflow of new money into ETFs went to the SPDR S&P 500 ETF fund, totaling $3.7 billion, reversing some of the $6.5 billion in outflows in the prior week. "We're still hearing stories coming out Libya and its civil war, but it looks like the smart money, or the institutional investors, are voting to invest back in this US via ETFs," said Tom Roseen , senior analyst at Lipper, a Thomson Reuters service.
When the ETFs are taken out of the picture, inflows into equity funds totaled just $233 million, the lowest inflow of cash in this category since December and well under the 13-week average of $2.5 billion. "The conventional fund business, or ex-ETFs, are kind of cooling their heels. One week doesn't make a trend but over the last three months there's been a lot of money coming in and maybe the seasonal factors pushed those numbers higher than on a regular weekly basis," said Roseen.
"They are not running away but they are concerned about the global economy and oil prices leading to the low levels on inflows," he said. Emerging market equity funds had outflows $866 million, marking a sixth straight week of net redemptions as the political turmoil in North Africa and the Middle East continued to unfold. Investors did put fresh cash into conventional emerging market equity funds -- $45.8 million -- however it was the ETFs that let the sector down for an eighth week in a row. This category had net outflows of $912 million. Much of that came from one fund, the iShares: MSCI Emerging Market ETF.
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