U.S. Weekly FundFlows Insight Report: Long-Term Assets Attract Net New Money On Positive COVID-19 Vaccine And Fiscal Aid Related News For The Week

Investors were overall net purchasers of fund assets (including those of conventional funds and ETFs) for the fourth week in a row. They injected $8.7 billion for Refinitiv Lipper’s fund-flows week ended December 2, 2020, as investors continued to cheer COVID-19 vaccine-related news and learned of bipartisan support for a scaled-back relief bill. Fund investors were net purchasers of long-term assets, injecting $7.2 billion into equity funds, $4.1 billion into taxable bond funds, and $201 million into municipal bond funds, while being net redeemers of money market funds, withdrawing $2.8 billion this week.

Market Wrap-Up

The U.S. market hit multiple record closing highs during the fund-flows week even after stocks posted their strongest November returns since 1928. The broad-based indices hit record closing highs on three of the four trading days—the markets were closed on Thursday in the U.S. in observation of Thanksgiving Day—during the flows week as investors embraced news of the possibility of Pfizer and BioNTech’s vaccine receiving official approval for use in the U.K. within a few days. Late in the fund-flows week, markets got a shot in the arm after lawmakers announced they were getting closer to an agreement on a scaled-back COVID-19 relief bill.

On the domestic side of the equation, “stay-at-home” and technology issues did a little bit better than some of the cyclical issues. The Nasdaq Composite Price Only Index (+2.11%) witnessed the strongest returns for the fund-flows week of the broadly followed U.S. indices, while the Russell 2000 Price Only Index (-0.38%) witnessed the only negative returns for the flows week. Overseas, the Shanghai Composite Price Only Index (+2.76%) chalked up the strongest plus-side returns of the often-followed broad-based global indices, while the FTSE 100 Price Only Index (+0.71%) posted the weakest returns.

The U.S markets were closed on Thursday, November 26, in observance of the Thanksgiving holiday. And while the markets closed early on Friday, November 27, the Nasdaq and S&P 500 booked record closing highs on Black Friday, historically one of the busiest shopping days of the year in the U.S., even as investors learned of new COVID-related business and consumer restrictions in the U.S. and other countries.

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