NEW YORK Feb 1 Investors in funds worldwide
poured $11 billion into U.S. stock funds in the latest week, the
most since September 2011 and contributing to a strong January
for stock funds globally, data from EPFR Global showed on
Both mutual funds and exchange-traded funds that hold U.S.
stocks saw inflows in the week ended Jan. 30. U.S. stock ETFs
captured $9.6 billion of the inflows, while U.S. stock mutual
funds raked in $1.4 billion, the fund-tracking firm said. The
inflows accounted for much of the $18.76 billion that flowed
into stock funds worldwide.
The spike in demand for U.S. stock funds marks a reversal
from the previous week, when investors pulled $1.28 billion from
them. Those outflows were, however, a result of institutional
investors redeeming money from U.S. stock ETFs, while retail
investors gave $340 million to U.S. stock mutual funds, EPFR
The huge inflows into funds that hold U.S. stocks exceed the
funds' cash gains of $10.35 billion in the first full week of
January, and also mark the fourth straight week of cash
contributions from mom-and-pop investors.
Emerging market stock funds pulled in $3.59 billion in new
money, down modestly the prior week's inflows. European stock
funds made a small comeback with gains of $1.19 billion,
compared to inflows of $573 million the previous week.
The big inflows into stock funds dwarfed demand for bond
funds worldwide, which gained $3.02 billion, down modestly from
inflows of $3.71 billion the prior week.
The benchmark S&P 500 rose just 0.5 percent over the
reporting period. Solid corporate earnings from companies such
as Procter & Gamble and Honeywell International
and upbeat U.S. unemployment and factory data boosted sentiment.
Central banks also issued influential statements over the
week. The European Central Bank said banks would repay 137
billion euros from crisis loans, returning more cash earlier
than expected and improving sentiment.
On the U.S. front, the Federal Reserve kept in place its
purchases of $85 billion in Treasuries and agency mortgage
securities on Wednesday.
Funds that hold emerging market bonds pulled in $1.53
billion in new cash, which was largely unchanged from the prior
week. Investors soured somewhat toward European bond funds and
redeemed $1.01 billion, showing greater avoidance after the
prior week's outflows of just $53 million.