By Sam Forgione
NEW YORK Aug 22 Investors in funds based in the
United States pulled roughly $9.4 billion out of stock funds in
the latest week, marking the biggest outflow from the funds
since July 2012, data from Thomson Reuters' Lipper service
showed on Thursday.
A large chunk of the outflows over the week ended Aug. 21
came from the SPDR S&P 500 ETF Trust. Investors withdrew
$10.27 billion from the exchange-traded fund, which tracks the
performance of the benchmark S&P 500 stock index.
The index plunged 2.53 percent over the weekly reporting
period as positive U.S. economic data reinforced fears that the
Federal Reserve will soon scale back its $85 billion in monthly
Funds that hold European stocks attracted $1.08 billion in
new cash, however, marking the biggest inflow to the funds in 10
weeks. The funds were popular even as the FTSEurofirst 300
index of top European shares fell 2.63 over the week.
Taxable bond funds, meanwhile, had outflows of $3.9 billion
over the weekly period as benchmark U.S. Treasury yields hit
two-year highs. As yields rise, prices fall.
Both inflation-protected bond funds and riskier high-yield
junk bond funds had the biggest outflows in eight weeks over the
latest period. Inflation-protected bond funds had outflows of
$499 million, while junk bond funds had outflows of $2.3