Investors unnerved by Europe’s debt crisis and market volatility continue to pull money from equity mutual funds.
According to the Investment Company Institute, mutual funds that invest in U.S. equities saw outflows of $6.67 billion and foreign stock funds shrunk by $2.96 billion in the week ended Nov. 30, bringing the mutual fund industry to its seventh straight month of net outflows, Investment News reports.
If counting the extra first two days of December, U.S. mutual funds lost a total $9.24 billion in the week ended Dec. 2, the highest rate of redemptions in almost two months.
In comparison, U.S.-listed ETFs and exchange traded notes posted net outflows of $238 million for the month of November. [ETFs see November Outflows]
However, like bond ETFs, bond mutual funds have brought in more assets. Bond funds added $1.16 billion last week while taxable-bond funds saw inflows of $709 million and muni-bonds attracted $449 million.