Exchange traded funds (ETFs) that invest in U.S. stocks raked in a net $13.3 billion in the week ending December 12, reports Rob Lenihan at TheStreet.com. The week before, ETFs had $1.5 billion in redemptions, so the turnaround makes up for it.
ETFs that invest primarily in non-U.S. stocks brought in $2.78 billion whereas the previous week, they took in $4.39 billion.
For funds that invest in stocks, the story is a little different: Lenihan says investors continued to take money out of domestic funds and invest overseas instead. Stock funds lost $4.86 billion the week ending December 12. The funds that invest in international stocks took in a net $141 million. Although that’s down from the $1.7 billion from the week before, international funds are still bringing in money.
Vincent Deluard, Global Equity Strategist at TrimTabs, says the situation might be attributed to a weak dollar. "People want to hold anything but dollars."
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.