Investors resumed buying stock funds the week ended Wednesday as the market rallied ahead of a rate cut by the Federal Reserve.
Equity funds took in a net $12.2 billion during the week ended Wednesday, according to TrimTabs Investment Research of Santa Rosa, Calif. That more than made up for the net $1.85 billion that walked out the door the previous week,
Funds that invest primarily in U.S. stocks took in $4.88 billion, about twice as much as the $2.4 billion they lost a week earlier.
Funds that invest primarily in non-U.S. stocks took in $7.32 billion, more than 13 times as much as the $539 million of inflows the previous week.
But investors yanked a net $213 million from bond funds after adding a net $2.05 billion during the previous week.
Hybrid funds, which invest in both stocks and bonds, had outflows of $91 million compared with inflows of $1.26 billion the previous week.
Exchange-traded funds that invest in U.S. stocks took in $3.03 billion during this past week, up from just $43 million the previous week. ETFs that invest in non-U.S. stocks had inflows of $2.8 billion, an increase from inflows of $995 million during the previous week.
Dow Jones Industrial Average
closed at 13,930.01Wednesday, up from 13,675.25 on Oct. 24.