U.S. Weekly FundFlows Insight Report: Investors Are Net Purchasers Of Long-Term Fund And ETF Assets For The Flows Week

For the fourteenth week in 15, investors were overall net purchasers of fund assets (including those of conventional funds and ETFs), injecting $3.4 billion for Lipper’s fund-flows week ended June 10, 2020. Fund investors were net purchasers of equity funds (+$20.4 billion, its largest weekly net inflows since March 14, 2018), taxable fixed income funds (+$11.1 billion), and municipal bond funds (+$2.8 billion, its second-largest weekly net inflows on record), while being net redeemers of money market funds (-$30.8 billion, the group’s fourth consecutive week of net redemptions) this week.

Market Wrap-Up

Markets rallied during the first part of the fund-flows week, as investors continued to cheer the reopening of their economies, news that global central banks announced new stimulus initiatives, and the largest nonfarm payrolls surprise in history.

On the domestic side, the Nasdaq Composite Price Only Index (+3.48%) witnessed the largest plus-side return for the fund-flows week of the broadly followed U.S. indices—closing above the 10,000 mark for the first time in history—followed by the Dow Jones Industrial Average Price Only Index (+2.74%). Overseas, the Nikkei 225 Price Only Index (+3.77%) chalked up the strongest plus-side returns of the often-followed broad-based global indices.

On Thursday, June 4, the Dow posted its fourth consecutive plus-side day as investors were ignoring continued strife on the Sino/American trade front, embracing news that the European Central Bank would expand its Pandemic Emergency Purchase Program by €600 billion and extending it to the end of 2022, and German Chancellor Angela Merkel’s coalition agreed to an economic stimulus package that would boost consumer spending and business investment.

On Friday, June 5, the Dow rocketed 800 points higher, with cyclicals leading the way, after the Bureau of Labor Statistics said the U.S. economy unexpectedly added 2.5 million jobs in May, beating analyst expectations for 7.3 million job losses. The unemployment rate ticked down to 13.3%. Despite the National Bureau of Economic Research reporting that the U.S. economy officially entered recession territory in February, ending the longest expansion in history (128 months), investors pushed the major U.S. indices higher on Monday, June 8, as they anticipated the Fed would keep its stimulus intact during its two-day policy-setting meeting this week, downplaying the nonfarm payrolls surprise for May.

1 2 3
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.


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