US equity funds see outflows on geopolitical worries
Investors pulled billions from U.S. equity funds amid tariff threats, though President Trump later eased these concerns. While large-cap and small-cap funds saw outflows, sector funds like financials and healthcare attracted new money. Bond fund i...
By Reuters |
Reuters
U.S. equity funds faced outflows in the week through January 21 as investors reduced risk exposure on concerns about President Donald Trump's tariff threats against European nations over Greenland.
Investors pulled a net $5.26 billion from U.S. equity funds, partly reversing the roughly $28.17 billion of net purchases made the previous week.
Trump stepped back from the tariff threats against eight European countries on Wednesday and ruled out seizing Greenland by force.
U.S. large-cap, small-cap and mid-cap funds recorded net outflows of $12.94 billion, $2.1 billion and $1.21 billion, respectively, in the latest week.
Sector funds, meanwhile, logged a net $3.3 billion in weekly inflows, led by financials, metals and mining, and healthcare funds, where investors bought a net $1.5 billion, $904 million and $615 million, respectively.
Weekly net investments in U.S. bond funds eased to a three-week low of $5.9 billion. Short-to-intermediate investment-grade funds saw stronger demand, drawing in a net $3.05 billion, a 44% jump from the $2.11 billion taken in the prior week.
General domestic taxable fixed-income funds, municipal debt funds, and short-to-intermediate government and Treasury funds attracted a net $1.1 billion, $994 million and $827 million, respectively.
Money market funds recorded a second straight week of outflows, with investors withdrawing a net $34.93 billion.
Investors pulled a net $5.26 billion from U.S. equity funds, partly reversing the roughly $28.17 billion of net purchases made the previous week.
Trump stepped back from the tariff threats against eight European countries on Wednesday and ruled out seizing Greenland by force.
U.S. large-cap, small-cap and mid-cap funds recorded net outflows of $12.94 billion, $2.1 billion and $1.21 billion, respectively, in the latest week.
Sector funds, meanwhile, logged a net $3.3 billion in weekly inflows, led by financials, metals and mining, and healthcare funds, where investors bought a net $1.5 billion, $904 million and $615 million, respectively.
Weekly net investments in U.S. bond funds eased to a three-week low of $5.9 billion. Short-to-intermediate investment-grade funds saw stronger demand, drawing in a net $3.05 billion, a 44% jump from the $2.11 billion taken in the prior week.
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General domestic taxable fixed-income funds, municipal debt funds, and short-to-intermediate government and Treasury funds attracted a net $1.1 billion, $994 million and $827 million, respectively.
Money market funds recorded a second straight week of outflows, with investors withdrawing a net $34.93 billion.
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