For the week ended Wednesday, equity exchange-traded funds and mutual funds saw inflow of $17.1 billion.
Fund investors apparently aren’t the ones bailing out of stocks in recent days.
EPFR Global data indicate that for the week ended Wednesday, equity exchange-traded funds and mutual funds saw inflow of $17.1 billion, according to Bank of America.
Mutual funds actually saw an outflow of $7.8 billion in the week, but ETFs saw an inflow of $24.9 billion. Overall, just two out of 18 trading days showed an outflow so far this year..
For the year to date through Jan. 26, equity ETFs and mutual funds saw an inflow of $84.16 billion. Of course, those numbers don’t include sales of individual stocks and sales of stock derivatives.
But the numbers show “zero capitulation in equity positioning,” BofA strategists led by Michael Hartnett wrote in a commentary Friday.
Other EPFR data illustrate that bond funds have taken it on the chin, seeing an outflow of $10.2 billion in the latest week. That certainly makes sense with interest rates rising. The 10-year Treasury yield rose 10 basis points to 1.85% in the first three days of last week.
Meanwhile, money-market funds saw an inflow of $14.9 billion in the latest week, which could be an indicator of investor caution, and so could the $2 billion inflow into gold funds in the latest week.
Hartnett calls this a period of “sell hubris, buy humiliation,” given the decline of speculative assets like cryptocurrencies, clean energy stocks and Ark Innovation ETF (ARKK) – Get ARK Innovation ETF Report.
