NEW YORK, Oct 29 (Reuters) - Investors sent $45.5 billion into U.S.-based equity mutual funds and exchange-traded funds from the start of October through Friday, the fifth-highest month on record, data from research provider TrimTabs showed on Tuesday.
Those stock funds, which own shares of companies both inside and outside the United States, have had inflows of $277 billion this year, the largest annual inflow since 2000. Funds that hold stocks of only U.S companies recorded their first annual inflow since 2007, the data showed.
Investor appetite for riskier assets has grown this year as the S&P 500 stock index has risen steadily and hit a series of record highs in October.
Three of the 10 largest monthly inflows into equity funds have occurred this year, TrimTabs said in a research note.
“As Silicon Valley bestows multi-billion dollar valuations on technology outfits with neither revenue nor profits, investors are piling into equity funds at the fastest rate since the technology stock bubble popped in 2000,” David Santschi, chief executive officer of TrimTabs, said in a statement.
Meanwhile, U.S. bond funds continued to experience outflows for the fifth consecutive month, with investors pulling $17.8 billion so far in October. Those funds have lost $31 billion this year, the largest outflow since 2000, when investors redeemed $50 billion.
“These outflows mark a huge shift for the fixed-income world,” said Santschi. “Not since late 2003 have bond funds posted five monthly outflows in a row.”
The anticipation of a pullback in the Federal Reserve’s $85 billion monthly bond purchases has spurred investors to sell bonds in recent months.
However, The Federal Open Market Committee, the U.S central bank’s policy-setting group, has been widely expected to signal on Wednesday the Fed will continue its stimulus.