Fund investors are apparently not the ones who have been bailing out stocks in recent days.
Data from EPFR Global indicates that for the week ended Wednesday, exchange-traded funds and mutual funds saw inflows of $17.1 billion, according to Bank of America.
Mutual funds actually saw an outflow of $7.8 billion during the week, but ETFs saw an inflow of $24.9 billion. Overall, only two out of 18 trading days have shown an exit so far this year.
Year-to-date through Jan. 26, equity ETFs and mutual funds saw an inflow of $84.16 billion. Of course, these figures do not include sales of individual stocks and sales of equity derivatives.
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But the numbers show “zero capitulation in stock positioning,” BofA strategists led by Michael Hartnett wrote in a comment Friday.
Other data from EPFR shows that bond funds took it on the chin, recording an outflow of $10.2 billion last week. It certainly makes sense with rising interest rates. The 10-year Treasury yield rose 10 basis points to 1.85% in the first three days of last week.
Meanwhile, money market funds saw an inflow of $14.9 billion over the past week, which could be an indicator of investor caution, much like the $2 billion inflow into gold funds over the past week.
Hartnett calls this a period of “selling in pride, buying in humiliation,” given the decline in speculative assets like cryptocurrencies, clean energy stocks and ETF Ark Innovation. (ARKK) – Get the ARK Innovation ETF report.