Monday, December 5, 2016

U.S. stock ETFs attract record eight-day cash inflow -TrimTabs



Nov 21 (Reuters) - Investors moved $45.7 billion into U.S.-listed equity exchange-traded funds (ETFs) in the eight trading days ended Thursday, Nov. 17, in the biggest eight-session inflow on record, according to TrimTabs Investment Research.

Donald Trump's victory in the U.S. presidential election has created a stock buying frenzy and swift exits from bond ETFs and mutual funds.

TrimTabs said its research showed that the eight-day inflow equaled 3.2 percent of the funds' assets and broke the previous eight-day record of $43.5 billion set in August 2007.

TrimTabs data for those investments date back to 1993 when the first U.S. ETFs started trading. An ETF is a security that tracks a basket of assets.

In comparison bond mutual funds have lost an estimated $15.0 billion this month through Nov.17, on track for their biggest monthly outflow since December 2015, Trimtabs said.

U.S.-listed bond ETFs shed $2.3 billion on the past five trading days, cutting their month-to-date inflow to $800 million.

Bond funds have brought in almost $1.5 trillion since the start of 2009, as investors have been assuming that central bankers would always keep bond prices rising, according to TrimTabs Chief Executive David Santschi.

"If more of them head for the exits, the consequences for the highly leveraged U.S. economy could be unpleasant," said Santschi.

Lipper data showed on Thursday that U.S.-based ETFs that invest in stocks took in $27 billion in the week to Nov. 16, the largest such inflow in its records, which date to 1996, when ETFs were nascent. http://markets.businessinsider.com/news/etf/U-S-stock-ETFs-attract-record-eight-day-cash-inflow-TrimTabs-1001537434

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