Despite Equity Issues Taking It On The Chin, Investors Inject $14.3 Billion Into Equity ETFs

Investors were overall net purchasers of fund assets (including those of conventional funds and ETFs) for the seventh consecutive week. They injected $74.7 billion for Refinitiv Lipper’s fund-flows week ended March 24, 2021 (their largest weekly sum since April 29, 2020), with the lion’s share attributable to flows into short-term assets. Fund investors padded the coffers of money market funds (+$59.3 billion), equity funds (+$10.9 billion), taxable bond funds (+$3.9 billion), and tax-exempt fixed-income funds (+$592 million) for the week.

Market Wrap-Up

The broad-based U.S. indices, from a performance perspective, took it on the chin for fund-flows week as investors appeared to unwind some of their recent rotation wins, several European countries witnessed a third round of COVID-19 lockdowns, and the Federal Reserve said it would not extend the temporary capital-requirement relief rules for banks.

On the domestic side of the equation, the Russell 2000 Price Only Index (-8.65%) suffered the largest market losses of the other broadly followed U.S. indices for the fund-flows week, bettered by the NASDAQ Composite Price Only Index (-4.16%). The Dow Jones Industrial Average Price Only Index (-1.80%) did the best job mitigating losses for the week. Overseas, the Xetra DAX Total Return Index (-0.53%) posted the strongest relative returns of the other often-followed broad-based global indices, while the Nikkei 225 Price Only Index (-4.69%) witnessed the largest declines.

On Thursday, March 18, 2021, stocks finished markedly lower, with the Nasdaq declining 3% on the day as the 10-year Treasury yield rose eight basis points (bps) to 1.71%, and European countries contended with a third round of COVID-19 shutdowns. This weighed on near-month crude oil futures, with the U.S. benchmark declining 7% to $60 per barrel (bbl) and gold edging higher. U.S. stocks suffered another round of declines on Friday, March 19, after investors learned the Fed will not extend temporary relief from year-long bank capital-requirement rules—pressuring financial issues—and the 10-year Treasury yield rose an additional three bps to 1.74%. Oil gained back some of the losses from the day before, settling at $61.42/bbl.

1 2 3
View single page >> |

All names and marks owned by Thomson Reuters, including "Thomson", "Reuters" and the Kinesis logo are used under license from Thomson Reuters and its affiliated companies.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.