"Modest" inflows into equity funds for the week ended Oct. 20 suggest market speculation is on the retreat, according to fund tracking firms.
AMG reported inflows of $200 million, marking a drop from the $1.1 billion funds took in during the prior week. TrimTabs says equity funds took in $1.5 billion, only a slight tick up from last week's inflow of $1.4 billion.
"Modest equity inflows have persisted despite the market's poor performance," states Carl Wittnebert, director of research at TrimTabs. "Speculative interest appears to have been wrung out, leaving only the long-term holders."
TrimTabs says equity funds that invest primarily in U.S. stocks had inflows of $1.5 billion, compared with outflows of $1.4 billion the prior week. International equity funds had outflows of $16 million, a continuation from last week's loss of $27 million.
Taxable bond funds reported net cash inflows totaling $125 million. Most went to balanced funds, $206 million, and investment grade corporate bond funds, $171 million, according to AMG.
AMG says REIT funds reported net inflows of $142 million, as $189 million of inflows into the
iShares Dow Jones U.S. Real Estate Index
exchange traded fund, or ETF, were offset by $145 million in outflows from the
Street TRKS Wilshire REIT Index
ETF. ETFs trade in a fashion not altogether unlike stocks.
AMG says money market funds reported outflows of $1.74 billion, while municipal bond funds saw inflows of $33 million for the week, a reversal of last week's outflow of $49 million.