Investors poured a record $40.3 billion into U.S. equity mutual funds and exchange-trade funds in July, after largely ignoring equities in June, research provider TrimTabs Investment Research said on Sunday.
Of the $40.3 billion total going into equity funds in July, $31.6 billion went into U.S. equity ETFs, while $8.7 billion flowed into U.S. equity mutual funds, TrimTabs reported.
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The record flows came a month after investors had dumped bonds at a record pace in June, following expectations of an increase in interest rates and changes to the U.S. Federal Reserve's stimulus program. A record $69.1 billion was pulled out of bond funds in June, followed by an outflow of $21.1 billion in July, according to TrimTabs data.
"Fund flows in the past two months were by far the most volatile we have ever measured," David Santschi of TrimTabs said in a report to clients.
Still, cash remains king, with the latest data suggesting more of the money that has come out of bonds this summer has gone into cash. In the latest eight weeks ended July 22, $110.9 billion poured into savings deposits, while $32.5 billion flowed into retail money market funds.
The combined inflow of $143.4 billion is nearly three times the $54.1 billion that flowed into all equity mutual funds and ETFs in June and July, TrimTabs said.
(Reporting by Ashley Lau in New York; Editing by Bernard Orr)