(Adds details on mutual funds and ETFs, analyst quote, table,
By Trevor Hunnicutt
NEW YORK, May 18 U.S. fund investors pivoted
from domestic stocks to bonds and international equities during
the latest week, Lipper data showed on Thursday, amid upheaval
for the Trump administration and fears that Washington will not
enact market-boosting policies.
Investors pulled $6 billion from domestic-focused stock
funds in the week ended Wednesday, a third straight week of
"It was basically a flat, non-eventful week, until yesterday
when all hell broke loose," said Pat Keon, senior research
analyst for Thomson Reuters' Lipper unit.
The S&P 500 and the Dow Jones Industrial Average
notched their biggest one-day fall since Sept. 9 on
Wednesday as investor hopes for tax cuts and other pro-business
policies faded after reports that President Donald Trump tried
to interfere with a federal investigation. Stocks recovered some
ground on Thursday.
U.S.-based funds that buy equities abroad and taxable bond
funds both avoided the selloff, reeling in cash for the ninth
Non-domestic stock funds pulled in $4.8 billion, while
taxable bond funds gathered $4.4 billion, Lipper said.
"It's just the thought that the U.S. is overbought," said
Keon. "They're looking for other growth stories out there."
Stock funds focused on emerging markets absorbed $1.5
billion, while their bond counterparts took in $559 million. In
both cases, they feasted on the most new cash since March.
Those markets hit a late-week snag, however.
Brazilian markets plummeted on Thursday as allegations that
President Michel Temer condoned bribes to silence a key witness
deflated investor optimism about the prospects for his ambitious
pension and labor reform agenda.
That weighed on emerging markets broadly. The iShares MSCI
Brazil Capped ETF sank 16 percent in its worst showing
since the 2008 financial crisis. The iShares MSCI Emerging
Markets ETF fell nearly 2 percent.
The following is a broad breakdown of the flows for the
week, including mutual funds and exchange-traded funds:
Sector Flow Chg Pct of Assets Count
($ blns) Assets ($ blns)
All Equity Funds -1.235 -0.02 5,824.515 11,500
Domestic Equities -6.045 -0.15 4,059.086 8,225
Non-Domestic Equities 4.810 0.27 1,765.429 3,275
All Taxable Bond Funds 4.370 0.18 2,414.668 5,805
All Money Market Funds 4.081 0.18 2,271.465 1,012
All Municipal Bond Funds 0.427 0.11 379.979 1,395
(Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan and