US Equity Funds Record Biggest Weekly Outflow in Five Weeks

• U.S. equity funds saw substantial outflows in the week to Oct. 30 as investors exercised caution ahead of Tuesday's presidential election and a Federal Reserve policy decision on Wednesday.
• According to LSEG data, investors divested a net $5.83Bn worth of U.S. equity funds during the week, the most since the seven days to Sept. 25. Investors ditched U.S. growth funds worth a net $4.06Bn in the largest weekly selloff since Oct. 2. Value funds also saw $2.19Bn of net outflows.
• The industrial, gold and precious metals, and healthcare sectors suffered net outflows of $779Mn, $392Mn and $278Mn, respectively. The consumer discretionary sector attracted $478Mn worth of net inflows.
• Investors snapped up U.S. bond funds for a 22nd week in a row, to the tune of $7.37Bn. They pumped $3.18Bn into U.S. short-to-intermediate investment-grade funds, the biggest amount in four weeks. General domestic taxable fixed income, and municipal debt funds also attracted a net $2.9Bn and $0.659Bn, respectively. A net $5.7Bn worth of U.S. money market funds was sold in the period, following about $30Bn worth of net purchases in the previous week. This could be due to investors exercising caution due to the upcoming U.S. presidential election and Federal Reserve policy decision, both of which add uncertainty and potential volatility.

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¹LSEG Data & Analytics, formerly Refinitiv, is an American-British global provider of financial market data and infrastructure. 

(Source: Reuters and NCBCM Research)