This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fund Investors Buy-in While ETF Investors Sell-out

Hal M. Bundrick

NEW YORK ( MainStreet)--The stock market has become a study of contradictions, as some investors buy in but most check out.

While the stock market is down about 3% for the month-to-date, some investors seem to taking the dip as an entry point, as equity mutual fund investors added $2 billion to their investments. The inflow to stock funds was tracked for the week through August 21 by Lipper.

Mutual fund investors were most enamored with overseas positions, preferring international multi-cap core funds (+$627 million) and emerging markets funds (+$567 million) classifications.

But what do ETF investors know that fund buyers don't? In stark contrast, ETF investors are rushing for the exits.

Exchange-traded fund (ETF) investors took an opposite strategy - in a big way - yanking $11.4 billion from their accounts.

ETF investors were especially pessimistic when it came to domestic equities, as the SPDR S&P 500 ETF (SPY) had net outflows of $10.3 billion, while the iShares Consumer Discretionary SPDR (XLY) saw $617 million of outflows. Like mutual fund investors, the focus for ETF holders was also beyond the shores of the U.S. as iShares MSCI EAFE (EFA) had net inflows of $796 million, its tenth best week on record, according to Lipper.

On the fixed income side, taxable bond fund investors still favor the loan participation funds group, which saw $1.7 billion in net inflows. High yield funds bore the brunt of the selling, with $1.3 billion of net outflows.

Investors are still extremely wary of municipal debt funds, which remained in the outflow mode for the 13th consecutive week, seeing a net $2.0 billion of withdrawals. Investors seem content to park their money in the meantime, with money market funds reaping inflows of $10.7 billion; fairly evenly split between institutional (+$4.6 billion) and retail (+$6.2 billion) products.

--Written by Hal M. Bundrick for MainStreet

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs