Investors pour $5.7 billion into U.S. ETFs this past week to buy on the dip

Funds that specialize in European stocks attracted US$1 billion to mark their ninth straight week of inflows.

NEW YORK? – Investors in U.S.-based funds committed US$5.7 billion to stock funds in the week ended March 25, marking their seventh straight week of inflows, data from Thomson Reuters\’ Lipper service showed on Thursday.

The inflows into stock funds were all in exchange-traded funds largely traded by hedge funds and other institutional investors. U.S.-based stock ETFs had US$7.3 billion of net inflows and U.S.-based stock mutual funds posted US$1.6 billion of money withdrawals.

\”Flows activity this week reflected two views around the globe: the retail mom-and-pop side sees four out of five down days around the Dow and sells, the ETF community sees the same down days and buys. They are buying on the dip,\” said Jeff Tjornehoj, head of Lipper Americas Research.

Taxable bond funds attracted US$2.6 billion to mark their second straight week of inflows. Riskier high-yield junk bond funds posted US$856 million of inflows, the first inflows in three weeks, according to Lipper.

Funds specializing in European stocks attracted US$1 billion to mark their ninth straight week of inflows.

The insatiable appetite for European equities continues to be spurred by the European Central Bank\’s 1 trillion euro government bond-buying program, which began in early March.

Overall, funds that specialize in non-domestic stocks attracted most of the inflows at US$4.9 billion, while funds specializing in U.S. stocks attracted US$816 million.

? Thomson Reuters 2015

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