In the week leading up to August 14, U.S. investors reduced their holdings in equity funds and shifted their focus to safer investments due to ongoing worries about the economy and recent market fluctuations.
During this period, there was a significant net outflow of $8.92 billion from U.S. equity funds, marking the largest weekly selloff since June 12. At the same time, investors moved $16.1 billion into money market funds and $3.35 billion into government bond funds, according to LSEG data.
U.S. large-cap equity funds saw their biggest outflow in nine weeks, with $6.08 billion withdrawn. Small-cap, mid-cap, and multi-cap funds also experienced outflows of $1.41 billion, $404 million, and $72 million, respectively.
In contrast, sectoral funds saw a net inflow of $380 million, ending a four-week streak of withdrawals. Notably, utilities and financials attracted $802 million and $541 million, respectively.
U.S. bond funds continued their trend of attracting investment, with $3.55 billion in net purchases, marking the 11th consecutive week of inflows. Investors put $1.34 billion into short-to-intermediate government and treasury funds and $677 million into short-to-intermediate investment-grade funds. However, they withdrew $948 million from general domestic taxable fixed income funds and $669 million from loan participation funds.
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