(Adds table, stock performance, analyst quote)
By Luciana Lopez
NEW YORK, July 3 Retail investors pulled money
out of U.S.-based stock funds in the week ended July 2, just a
day before stocks closed at yet another record high, data from
Thomson Reuters' Lipper service showed on Thursday.
Stock mutual funds posted net outflows of $1.7 billion, the
first since December, over that week, Lipper said. In contrast,
stock exchange-traded funds saw net inflows of $4.8 billion.
Stock mutual funds are commonly purchased by retail
investors, while stock ETFs are thought to represent the
Many of those retail investors were perhaps booking some
profits, said Barry Fennell, senior research analyst at Lipper.
"I think a lot of them (retail investors) perhaps weren't
expecting" gains to continue, he said.
In addition, with the end of the quarter falling during the
period, some investors likely rebalanced their portfolios.
The Dow Jones industrial average topped 17,000 for the first
time Thursday, the index's first big 1,000-point milestone this
year, following news that hiring in the United States
accelerated last month. The Dow Industrial is up more than 4
percent so far this year on a total return basis, which includes
dividends. The benchmark Standard & Poor's 500 Index is
up 8.54 percent year-to-date on a total return basis.
The S&P 500 gained 0.77 percent from its close on
June 25 through its close on July 2.
That index closed on Wednesday at a record high, which it
then beat on Thursday after data showed a surge in U.S. job
growth, suggesting gathering momentum in the world's biggest
economy. The S&P ended the holiday-shortened week at 1985.44 on
Indeed, some large portfolio managers say stocks could
continue to notch gains this year as the economy expands and the
Federal Reserve keeps U.S. interest rates low.
Taxable bond funds attracted net inflows of $1 billion, the
second straight week of inflows. Corporate high-yield bond funds
attracted $90 million in net new cash, after drawing $619
million in net inflows the previous week.
Money market funds posted net inflows of $5.4 billion, also
their second straight week of inflows.
Sector Flow Chg % Assets Assets Count
All Equity Funds 3.117 0.07 4,257.381 10,816
Domestic Equities 1.476 0.05 3,144.663 7,868
Non-Domestic Equities 1.641 0.15 1,112.718 2,948
All Taxable Bond Funds 1.058 0.06 1,808.235 5,478
All Money Market Funds 5.438 0.24 2,259.431 1,308
All Municipal Bond Funds 0.019 0.01 292.375 1,437
(Reporting by Luciana Lopez; Additional reporting by Jennifer
Ablan; Editing by James Dalgleish)