By Trevor Hunnicutt
NEW YORK, March 22 Investors piled into
U.S.-based domestic stock funds at the fastest pace in a month
before Wall Street's biggest one-day fall since the November
U.S. presidential election, Investment Company Institute data
showed on Wednesday.
U.S.-based stock funds attracted nearly $11 billion during
the week through March 15, and about $9 billion of that cash
went to funds that buy domestic shares, the trade group's data
It was the funds' seventh straight week of inflows and came
in the days before Wall Street's selloff on Tuesday, when the
S&P 500 and Dow Jones Industrial Average indexes
sank by more than 1 percent.
Markets, which have been peppy since President Donald
Trump's election victory, have grown more cautious ahead of a
test in the House of Representatives of a bill he supports to
The success or failure of that effort could signal the
likelihood that tax and regulation cuts touted by Trump and
anticipated by markets will gain support.
"Investors have been bullish this year, due in part to the
improving U.S. economy, and continued to be so even as the
Federal Reserve raised rates last week," said Todd Rosenbluth,
director of ETF and mutual fund research at CFRA.
"As the market has sold off in recent days, we think going
forward investors will further seek out the relative safety of
Bond funds attracted $2.8 billion during the week, their
12th straight week of inflows, even as the Fed hiked rates on
March 15 for the second time in three months.
Rate-sensitive municipal bonds posted $203 million in their
first week of withdrawals since January.
The following table shows estimated ICI flows, including
mutual funds and exchange-traded funds (all figures in millions
3/15 3/8 3/1 2/22 2/15/2017
Equity 10,992 9,118 9,116 6,949 13,314
-Domestic 9,014 4,290 5,766 3,455 8,059
-World 1,978 4,828 3,350 3,495 5,255
Hybrid -242 -376 -912 -26 -52
Bond 2,837 6,921 9,707 6,787 8,590
-Taxable 3,040 6,868 9,432 6,573 7,973
-Municipal -203 53 274 214 616
Commodity 237 -663 192 35 327
Total 13,825 15,000 18,103 13,745 22,178
(Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)