Fund flow data reveal that institutional investors piled into exchange traded funds during the impressive run-up in last week’s rally.
According to Lipper data, in the week ended Oct. 12, equity funds bled $24 million, Reuters reports. However, if ETF fund flows were excluded, total outflows amounted to $3.1 billion.
Domestic funds, excluding ETFs, saw net outflows of $2.07 billion while non-domestic funds experienced $1.04 billion in outflows, according to Lipper. [Exodus from Stock Mutual Funds Continues; ETFs See Inflows]
The fund flow data indicates that the average retail investor did not partake in the short-term rally last week.
Notable ETF inflows in the week ended Oct. 12 include:
- SPDR S&P 500 ETF (NYSEArca: SPY), which added $912 million.
- iShares MSCI Emerging Markets Index (NYSEArca: EEM), which added $796 million.
- iShares Russell 2000 Index Index (NYSEArca: IWM), which added $539.
If ETFs were included into total equity fund flows, total domestic funds saw outflows of $98 million while total non-domestic funds saw inflows of $74 million.
For more information on mutual funds, visit our mutual fund category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.
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.