associate sponsors


Investors dump $5 billion of equity funds on U.S.-China trade fight: ICI

Investors dump $5 billion of equity funds on U.S.-China trade fight: ICI

By James Thorne

NEW YORK (Reuters) - U.S.-China trade tensions drove investors to pull $5.16 billion from equity exchange-traded funds and mutual funds in favor of bonds for the week ended June 20, the Investment Company Institute said on Wednesday.

Cash outflows from equities were led by domestic long-term mutual funds, which ceded $3.11 billion after $1.15 billion the prior week. Equity ETFs had negative net outflows of $3.59 billion, seven days after reporting $7.54 billion of inflows.

"The risk off trade was clearly visible in last week's fund flows," said Scott Anderson, chief economist at Bank of the West. "Uncertainty of trade protection is becoming a growing concern for investors as the U.S.-China trade war heats up."

On June 15, both the United States and China released lists of imports to be targeted by tariffs.

Total ETF and mutual fund bond flows stayed positive for the 18th straight week, attracting $4.55 billion compared with $5.56 billion a week earlier.

Commodity fund investment declined $264 million as "investors scaled back expectations for emerging market growth," Anderson said.

Hybrid funds experienced withdrawals of $848 million.

Demand for all funds was broadly negative at $1.72 billion, compared with inflows of $9.95 billion in the previous week.

(Reporting by James Thorne; Editing by Jennifer Ablan and Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Jun 28, 2018 00:06 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See