U.S. fund investors regained their risk appetite during the latest week, draining money market funds and pouring their cash into stocks after six straight weeks of withdrawals.
NEW YORK (Reuters) – U.S. fund investors regained their risk appetite during the latest week, draining money market funds and pouring their cash into stocks after six straight weeks of withdrawals.
Stock exchange-traded funds in the United States attracted $9.2 billion during the week ended Aug. 30, the most since June, according to Lipper data on Thursday.
That more than offset the $3.1 billion that bled from equity mutual funds in the same period, the research service said. Mutual funds are heavily favored by retail investors, while ETFs draw a diverse set of clients, including fast-trading hedge funds.
Tom Roseen, head of research services for Thomson Reuters&rsquo- Lipper unit, said there is plenty to worry about with ongoing conflict between North Korea and the United States as well as &ldquo-lofty&rdquo- U.S. stock prices. Yet the global economy looks good.
&ldquo-People were a little bit more aggressive,&rdquo- Roseen said of ETF investors. &ldquo-They were just focused on the good news.&rdquo-
Funds focused on domestic shares pulled in $3.9 billion, the most since June. Internationally focused equity funds pulled in $2.2 billion, the most since July, Lipper said.
Money market funds, which have pulled in tens of billions this summer as calm markets turned turbulent, posted $19.9 billion in withdrawals during the latest week, the data showed.
But Roseen said uncertainty is keeping demand up for some safe-haven investments. Gold is trading at $1,321 an ounce, up nearly 9 percent from early July.
Precious metals commodities funds, which invest directly in gold and other similar assets, pulled in $766 million in their largest week of inflows since June. The VanEck Vectors Gold Miners ETF pulled in $213 million, the most since March. That fund buys shares in companies that produce bullion.
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