US equity funds record biggest weekly outflow in five weeks

May 5, 2023
US equity funds record biggest weekly outflow in five weeks
Traders work on the floor of the NYSE in New York

(Reuters) – U.S. equity funds witnessed massive outflows in the week to May 3, undermined by uncertainty over U.S. debt ceiling, caution about the Federal Reserve’s policy meeting and a sell-off in regional bank shares.

Investors exited a net $15.61 billion worth of U.S. equity funds during the reported period, their biggest weekly net selling since March 29, Refinitiv Lipper data showed.

Graphic: Fund flows: U.S. domiciled equities, bonds and money market funds – https://www.reuters.com/graphics/USA-FLOWS/USA-FLOWS/lgvdkxleapo/chart.png

U.S. large-cap funds lost $7.27 billion in net selling, the most since March 29, while small- and mid-cap funds saw outflows of $1.84 billion and $1.29 billion, respectively.

Among sector funds, tech and financials witnessed outflows of a net $706 million and $389 million, respectively, but investors poured in $432 million into consumer staples.

Graphic: Fund flows: U.S. equity sector funds – https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/gkplwjxzyvb/chart.png

Meanwhile, U.S. money market funds drew a net $31.37 billion worth of inflows, compared with $47.72 billion in net purchases in the week before.

U.S. bond funds, however, saw net outflows of $1.36 billion. Investors pulled out from U.S. bond funds for the third week in a row.

U.S. general domestic taxable fixed income funds witnessed outflows of $1.49 billion. U.S. high yield funds lost $1.77 billion in their first weekly net selling in five weeks.

Meanwhile, U.S. short/intermediate investment-grade funds obtained a net $1.92 billion in their biggest weekly inflow in 10 weeks. Investors also purchased $1.07 billion worth of U.S. government bond funds.

Graphic: Fund flows: U.S. bond funds – https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/akpeqnalapr/chart.png

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shilpi Majumdar)

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