NEW YORK, Sept 29 (Reuters) - U.S. investors pulled $5.9 billion from all equity funds in the week ended Sept. 28, the bulk of which was withdrawn through exchange-traded funds, data from Thomson Reuters’ Lipper showed on Thursday.
Investors withdrew $4.2 billion from domestic funds, with $2.7 billion of that being pulled in ETFs. They also withdrew $1.65 billion from non-domestic funds, or $1.5 billion through ETFs, Lipper data showed.
Most of the equity investments withdrawn was likely institutional money, and some was invested for a very short term — four days or less — said Tom Roseen, a senior analyst with Lipper in Denver.
“We’ve seen a disproportionate pulling out or putting in via ETFs,” Roseen said. “A lot of people are using ETFs for short-term trading purposes. Big moves like that, we can call it institutional in nature,” he said.
The ETF outflows were concentrated in four big index funds: $1.29 billion was pulled through the iShares Russell 2000 Index ETF (IWM), $800 million was withdrawn from the SPDR S&P 500 ETF (SPY), $647 million came from the iShares MSCI Emerging Markets ETF (EEM) fund and $594 million came from the iShares Russell 1000 Growth Index ETF (IWF).
Excluding ETFs, investors pulled $1.55 billion from domestic equity funds and just $132 million from non-domestic equity funds.
Municipal bond funds experienced their fourth consecutive week of inflows, with $600 million being added, and money market funds took in $6.2 billion. Municipal bond funds have had positive flows for 11 of the past 13 weeks, said Roseen.
Taxable bond funds took in $1.6 billion during the week.
Lipper’s weekly fund flows data are compiled from reports issued by U.S.-domiciled mutual funds and exchange-traded funds.
The following is a broad breakdown of the flows for the week, including ETFs (in billions of dollars): Sector Flow Change Total Share
Change in Assets Assets Class
(pct) Count ============================================================= All Equity Funds -5.892 -0.23 2,485.893 10,421 - Domestic Equities -4.246 -0.22 1,855.518 7,871 - Non-Domestic Equities 1.646 -0.26 630.375 2,550 All Taxable Bond Funds 1.581 0.11 1,392.021 4,437 All Money Market Funds 6.261 0.27 2,368.947 1,496 All Municipal Bond Funds 0.600 0.18 336.837 1,582