Investors withdrew money from US-based stock mutual funds for the ninth straight week, Investment Company Institute data showed on Wednesday, reflecting skepticism about the market's growth prospects, tepid corporate earnings and mixed economic data.
Stock funds posted $4.4 billion in outflows during the latest week, the data showed. The latest figures add to a pattern for US-based stock funds, which have recorded outflows in 39 of the last 52 weeks, according to ICI, a trade group for funds.
During the week ended on May 11, underwhelming profit reports from Walt Disney Co and Macy's Inc weighed on markets. But strong inflation data and continued US economic growth have raised expectations that the US Federal Reserve will nonetheless hike interest rates.
"There's been stronger economic data, combined with disappointing earnings from consumer discretionary companies in the past week," said Todd Rosenbluth, director of exchange-traded and mutual fund research at S&P Global Market Intelligence. "Investors have favoured the safety of bond mutual funds over US equity ones amid uncertainty."
Funds invested in US shares posted $4.9 billion in outflows, while those focused on international stocks netted cash for the first time in nine weeks ahead of a June 23 referendum on Britain's membership in the European Union. US-based international stock funds added $430 million after posting $6.6 billion in outflows over the preceding eight weeks, the data showed.
Bond funds, meanwhile, have pulled in more than $50 billion over the last 11 weeks, including $4.1 billion in the latest week, ICI said. US municipal bond funds attracted $2 billion, and taxable government bond funds gathered $1.2 billion, ICI said, extending an unbroken streak of popularity this year for the two categories.