Aug 4 Investors poured a record $40.3 billion
into U.S. equity mutual funds and exchange-trade funds in July,
after largely ignoring equities in June, research provider
TrimTabs Investment Research said on Sunday.
Of the $40.3 billion total going into equity funds in July,
$31.6 billion went into U.S. equity ETFs, while $8.7 billion
flowed into U.S. equity mutual funds, TrimTabs reported.
The record flows came a month after investors had dumped
bonds at a record pace in June, following expectations of an
increase in interest rates and changes to the U.S. Federal
Reserve's stimulus program. A record $69.1 billion was pulled
out of bond funds in June, followed by an outflow of $21.1
billion in July, according to TrimTabs data.
"Fund flows in the past two months were by far the most
volatile we have ever measured," David Santschi of TrimTabs said
in a report to clients.
Still, cash remains king, with the latest data suggesting
more of the money that has come out of bonds this summer has
gone into cash. In the latest eight weeks ended July 22, $110.9
billion poured into savings deposits, while $32.5 billion flowed
into retail money market funds.
The combined inflow of $143.4 billion is nearly three times
the $54.1 billion that flowed into all equity mutual funds and
ETFs in June and July, TrimTabs said.