U.S. equity funds saw substantial outflows in the week to Oct. 30 as investors exercised caution ahead of Tuesday’s presidential election and a Federal Reserve policy decision on Wednesday.
According to LSEG data, investors divested a net $5.83 billion worth of U.S. equity funds during the week, the most since the seven days to Sept. 25.
Investors ditched U.S. growth funds worth a net $4.06 billion in the largest weekly selloff since Oct. 2. Value funds also saw $2.19 billion of net outflows.
The industrial, gold and precious metals, and healthcare sectors suffered net outflows amounting to $779 million, $392 million, and $278 million, respectively. The consumer discretionary sector attracted $478 million worth of net inflows.
Investors snapped up U.S. bond funds for the 22nd week in a row, to the tune of $7.37 billion.
They pumped $3.18 billion into U.S. short-to-intermediate investment-grade funds, the biggest amount in four weeks. General domestic taxable fixed income, and municipal debt funds also attracted a net $2.9 billion and $659 million, respectively.
A net $5.7 billion worth of U.S. money market funds was sold in the period, following about $30 billion worth of net purchases in the previous week.
(Source: Reuters)
