October 29, 2015 / 10:30 PM / 4 years ago

UPDATE 1-U.S. stock ETFs posted $8.2 bln inflows over weekly period -Lipper

(New throughout, adds details, table and comments from Lipper
analyst)
    By Trevor Hunnicutt
    NEW YORK, Oct 29 (Reuters) - Investors piled $8.2 billion
into stock exchange-traded funds over the week ended Oct 28, the
third week of inflows for those funds and the most new money
since mid-September, Lipper data showed on Thursday.
    The inflows followed a week dominated by central bank
policymakers. The Federal Reserve on Wednesday confirmed the
market's expectations that it would keep the interest rates it
controls near zero but made clear that a December rate  hike
remained possible. 
    That Fed's statement followed a rate cut by the Chinese
central bank and the possibility that European policymakers will
consider stepping up stimulus efforts.
    "It was a good week for the markets," said Pat Keon, a
research analyst at Lipper. "There was a lot of positive news in
the equity markets."
    Investors in ETFs are often thought to represent the
institutional investor, including hedge funds. Mutual funds are
thought to represent retail investors.
    But not all investors were ready to step up risk-taking. The
swift movement by U.S.-based ETF buyers into funds such as the
SPDR S&P 500 ETF and the PowerShares QQQ Trust 
came as investors also pumped $15.7 billion of new cash into
money market funds, which are seen as low risk. Those funds had
lost $2.7 billion to investor withdrawals the week before,
according to Lipper data.
    Meanwhile, stock mutual funds, which are used extensively by
retail investors, posted just $221 million in inflows, Lipper
said.
    Across mutual funds and ETFs, nearly 80 percent of the new
money in stocks went into funds focused on U.S. domestic
markets.
    Taxable bond funds, meanwhile, took in a net $432 million,
led by strong flows into high-yield bond funds, which took in $2
billion, their fourth straight week of inflows. Those so-called
junk bonds are seen as moving in tandem with stocks. 
    By contrast, risk-haven U.S. Treasury funds posted $1.6
billion in outflows over the period.
    The weekly Lipper fund flow data is 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 exchange-traded funds (in $ billions):
 Sector             Flow Chg  % Assets  Assets ($Bil)  Count
                    ($Bil)                             
 All Equity Funds   8.374     0.16      5,219.880      11,934
 Domestic Equities  6.629     0.18      3,752.640      8,533
 Non-Domestic       1.745     0.12      1,467.240      3,401
 Equities                                              
 All Taxable Bond   0.432     0.02      2,322.543      6,118
 Funds                                                 
 All Money Market   15.692    0.66      2,398.819      1,220
 Funds                                                 
 All Municipal      0.349     0.10      351.089        1,506
 Bond Funds                                            
 
 (Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and
David Gregorio)
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