By Trevor Hunnicutt
NEW YORK, March 8 Investors pumped up their risk
in the latest week, delivering U.S.-based stock funds their
fifth straight week of net cash, Investment Company Institute
data showed on Wednesday.
Stock mutual funds and exchange-traded funds in the United
States attracted $9.1 billion, while bond funds gathered $9.7
billion, the trade group's data showed.
The data covers the week ended March 1, which was capped by
a buying spree that pushed the Dow Jones Industrial Average
past the 21,000 mark for the first time as investors took
a brighter view of economic growth prospects after U.S.
President Donald Trump's first speech to Congress.
"We continue to see investors position for a bull market
that both ages and rages at the same time, all in an environment
where monetary policy is attempting to hand the baton off to
fiscal stimulus," said Matt Bartolini, head of SPDR Americas
Research at State Street Global Advisors.
U.S. Federal Reserve officials have increasingly suggested
they may consider raising interest rates as early as the
monetary policy meeting scheduled for next week, while Trump has
touted policies including tax cuts and infrastructure spending.
"If there is any slippage in this delicate relay race of
monetary policy handing the baton off to fiscal stimulus, the
next leg of the rally may be a bit of an uphill climb," said
For now, investors are shouldering more risk.
U.S.-based equity funds that invest domestically attracted
$5.8 billion, while those invested abroad took in $3.4 billion
in their 13th consecutive week of inflows.
Investors also added cash to U.S.-based taxable-bond funds,
a category including Treasuries and corporate debt, for the 13th
straight week. Those funds took in $9.5 billion in the latest
The following table shows estimated ICI flows, including
mutual funds and exchange-traded funds (all figures in millions
3/1 2/22 2/15 2/8 2/1/2017
Equity 9,117 6,949 13,314 5,492 15,045
-Domestic 5,767 3,455 8,059 814 11,769
-World 3,350 3,495 5,255 4,678 3,276
Hybrid -912 -26 -52 155 -567
Bond 9,729 6,788 8,590 11,608 9,336
-Taxable 9,454 6,574 7,973 10,697 8,468
-Municipal 275 214 616 911 869
Commodity 192 35 327 1,061 413
Total 18,126 13,747 22,178 18,315 24,228
(Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)