(Reuters) – U.S. investors trimmed positions in equity funds and rolled into safer money market funds in the week leading to Jan. 10, exercising caution ahead of a U.S. inflation report and earnings from major lenders.
They sold U.S. equity funds worth a net $11.55 billion, the most in a week since June 21, 2023, while purchasing money market funds worth about $4.6 billion.
U.S. large cap funds saw significant withdrawals, amounting to about $8.82 billion, the biggest since mid-March 2023. Investors also sold mid-, small- and multi-cap funds of about $1.38 billion, $828 million and $306 million, respectively on a net basis.
Investors, however, added about $682 million to U.S. sectoral equity funds. They purchased materials, healthcare and financials sector funds of $568 million, $496 million and $313 million, respectively, but withdrew a net $543 million out of consumer discretionary.
U.S. bond funds drew about $4.9 billion as net buying extended into a third successive week.
General domestic taxable fixed income funds attracted a significant $5.23 billion, the most since at least April 2020.
U.S. short/intermediate investment-grade, and high-yield funds also received $869 million and $491 million, respectively, but short/intermediate government and treasury funds saw $2.79 billion worth of outflows.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Barbara lewis)
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