Investors Up Exposure in US Equities amid Rising Markets
Inflows continued in domestic equities
According to Lipper data, US-based stock ETFs (exchange-traded funds) saw inflows worth $9.4 billion last week even as the markets (SPY) continued to see record highs. It was the eighth consecutive week of inflows in the US-based stock ETFs. On the other hand, US-based stock mutual funds saw outflows of $3.5 billion during the same period. Normally, ETFs represent the investment behavior of institutional investors, while mutual funds represent that of retail investors.
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US-based domestic equities (JPM) (BAC) (GS) (C) funds added $3.9 billion, while US-based non-domestic equities funds added $2 billion, the tenth consecutive week of inflows. US-based investment-grade corporate bond funds attracted inflows worth $2.6 billion, the tenth straight week of inflows. On the other hand, US-based high-yield bond funds saw outflows worth $209 million in the week. US-based international equities added $2 billion during the week, posting its 14th consecutive week of gains. Emerging market debt funds collected $322 million, while emerging market equities posted outflows of $68 million.
The US will release the second estimate for GDP growth rates for the third quarter. The first estimate showed that the GDP rose 3%. US new home sales data for October will also be released this week. Canada, India, and Brazil will report their third-quarter GDP data this week. Germany will release the unemployment rate and the preliminary inflation rate for November, while Japan will report its inflation rate for October.