© Reuters. File photo: On November 3, 2009, a banker at a bank in Westminster, Colorado, was calculating dollars. REUTERS/Rick Wilking
(Reuters)-In the week ending July 28, U.S. equity funds saw strong capital inflows, thanks to optimism about earnings and hopes for a faster economic recovery from the COVID-19 pandemic.
Data from Refinitiv Lipper shows that US equity funds have a net inflow of US$8.03 billion, the largest inflow in five weeks.
(Illustration: Funds flow into the U.S. stock, bond and money market: https://fingfx.thomsonreuters.com/gfx/mkt/xmpjogjzzvr/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market jpg)
The inflow of equity funds was mainly concentrated in exchange-traded funds, and their holdings increased by US$10.9 billion.
On the other hand, US equity mutual funds are facing an outflow of US$943 million, highlighting investors’ preference for passive funds in recent months.
US growth funds received US$2.7 billion, the largest weekly inflow in four months, while US value funds faced weak outflows.
(Picture: Funds flowing into the US stock sector: https://fingfx.thomsonreuters.com/gfx/mkt/mypmnmxmmvr/Flows%20into%20U.S.%20equity%20sector%20funds.jpg)
(Illustration: Capital flows into the US Growth and Value Fund: https://fingfx.thomsonreuters.com/gfx/mkt/mopanmdmkva/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg)
Among industry funds, the demand for technology, consumer staples and industrial products was strong, with inflows of US$931 million, US$693 million and US$409 million, respectively.
At the same time, US bond funds also attracted $3.3 billion, the highest level in three weeks, due to lingering concerns about rising inflation and the delta variant of the new coronavirus.
(Picture: Flowing into US bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoykyrvx/Flows%20into%20U.S.%20bond%20funds.jpg)
Data show that the inflation protection fund attracted a record $2.2 billion this week.
The US money market fund received a net $17.9 billion, the largest in nine weeks.
Converged Media Fusion Media or anyone related to Fusion Media will not be liable for any loss or damage caused by relying on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.