Fund investors retreat from US stocks as coronavirus fears weigh

Fund investors retreat from US stocks as coronavirus fears weigh

Investors pulled nearly US$3.3 billion out of mutual funds and exchange-traded funds that hold U.S. stocks last week, snapping the longest streak of asset gains since July, according to data released Wednesday by the Investment Company Institute.

A trader works on the floor of the New York Stock Exchange shortly before the closing bell as the m
FILE PHOTO: A trader works on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. REUTERS/Lucas Jackson

NEW YORK: Investors pulled nearly US$3.3 billion out of mutual funds and exchange-traded funds that hold U.S. stocks last week, snapping the longest streak of asset gains since July, according to data released Wednesday by the Investment Company Institute.

The pullback from the U.S. equity market came during a week in which companies such as Apple Inc said the coronavirus outbreak, now known as covid-19, will likely affect its quarterly results and could weigh on its supply chain.

Concerns about the global economic impact of the virus helped push the benchmark S&P 500 down nearly 7.3per cent since Feb 19, according to Refinitiv data. The index is now down nearly 3per cent since the start of the year.

For the year to date, investors have pulled US$26.7 billion from funds that invest in U.S. stocks.

Fixed income funds garnered nearly US$14.9 billion in new assets, continuing a winning streak that has pulled in nearly US$119 billion into the category since the start of the year.

World stock funds, meanwhile, added slightly more than US$3.5 billion in new assets, continuing a wining streak that began in mid-December.

(Reporting by David Randall; Editing by David Gregorio)

Source: Reuters

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