U.S. stock funds saw a record $23.9 billion withdrawn by investors in the last week, according to new data, as the turmoil in global stock markets saw traders shun equities in favor of perceived safe havens.Exchange-traded fund (ETF) outflows alone constituted the bulk of withdrawals, at $21 billion, while mutual fund outflows made up $3 billion of withdrawals, according to data from Thomson Reuters’ Lipper unit. It also showed that tech stock funds suffered $1.1 billion in outflows in its worst losses since 2016.Lipper has tracked fund flows since 1992 and says it was the worst outflows on record. “We’re seeing a flight to safety here, money leaving equities, a lot of money going to money markets,” Pat Keon, senior research analyst for Lipper, told Reuters. Money market funds are hugely popular in the U.S. where they are seen as a safe place to park cash during bouts of volatility. The funds are seen as low-risk vehicles that invest in short-term securities.
Source: US stock funds suffer record outflows of $23.9 billion – CNBC
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