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Investors poured about $57.38 billion into global money market funds in their most significant weekly net purchases since June 7, LSEG data showed. By region, U.S., European and Asian money market funds drew $32.18 billion, 20.75 billion and $1.64 billion, respectively, in inflows. Reuters Graphics Reuters GraphicsOn the other hand, global bond funds drew $9.24 billion worth of inflows, the biggest amount in nine weeks. Among commodities, precious metal funds saw $518 million worth of net selling, the 15th weekly outflow in a row, but energy funds received inflows for a second week, worth about $101 million. Data for 28,201 emerging market funds showed equities suffered outflows for a fourth successive week, valuing $1.81 billion on a net basis.
Persons: Gaurav Dogra, Patturaja, Susan Fenton Organizations: Reuters Graphics Reuters, Investors, Thomson Locations: China, Europe, Britain, U.S, Bengaluru
US equity funds see outflows for sixth week in a row
  + stars: | 2023-09-08 | by ( ) www.reuters.com   time to read: +2 min
According to LSEG data, investors withdrew a net $5.96 billion out of U.S. equity funds during the week, compared with about $4.42 billion worth net withdrawn the previous week. Investors offloaded about $3.96 billion worth of equity large-cap funds compared with about $110 million worth of net selling in the previous week. Small- mid-, and multi-cap funds also witnessed $1.56 billion, $365 million and $4 million worth of net selling, respectively. U.S. bond funds witnessed outflows for a fourth successive week, with about $622 million in net selling. Government bond funds also saw about $260 million worth of outflows, the first in five weeks.
Persons: Andrew Kelly, Gaurav Dogra, Patturaja, Emelia Sithole Organizations: New York Stock Exchange, REUTERS, Investors, Treasury, Reuters Graphics Reuters, Money, Thomson, & $ Locations: New York City, U.S, China, Europe, Bengaluru
After paying off $42,000 worth of debt, he got serious about investing and built up a six-figure net worth through "lazy investing" while saving for his first home simultaneously. He reacted to the 2022 downturn similarly to how he did when the stock market crashed in 2020: apathetically. These are Vanguard, Fidelity, and Schwab's total stock market index funds. Another component of the lazy investing strategy is periodic rebalancing. It probably shouldn't be any more than four times a year because then the 'lazy investing' turns a bit too hands on."
Persons: Jesse Cramer, Berkshire Hathaway, Cramer, haven't, I'm, hasn't, they're, Cramer rebalances, it's, Berkshire Hathaway Cramer doesn't, Warren Buffett, Charlie Munger, Hathaway, I'd Organizations: Berkshire, Vanguard, Fidelity Locations: Berkshire
The recent jump in market interest rates may have caught some ETF investors off guard, and they are now shifting back into short-term bond funds that can better withstand rising yields. Bond yields move in the opposite direction of price, and long-term bonds see their prices hit harder when rates rise. As a result, investors are shifting into short-term bond funds. The following short-term bond ETFs were in the top 10 for net inflows over the past week, according to FactSet. The upward move for bond yields has been particularly acute in the long end of the yield curve.
Persons: Claudio Irigoyen, Fitch, Irigoyen, TLT Organizations: Federal, Treasury, Treasury Bond ETF, Bloomberg, Bank of America Locations: U.S, Japan
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). If you're worried about a recession, there are only two things you need: an emergency fund and diversified investments. The biggest danger to a young person isn't a risky portfolio or potential market drop, but avoiding investing. These "funds of funds" automatically choose a blend of investments based on your age — the younger you are, the riskier the investments (more stocks). At the end of the day, the "biggest danger" to a young person isn't a risky portfolio or potential market drop, he said, but avoiding investing all together.
Persons: Ramit Sethi, Sethi, Rich, you'll, Read Organizations: Service Locations: Wall, Silicon, arm's
US equity funds record biggest weekly outflow in seven weeks
  + stars: | 2023-08-11 | by ( ) www.reuters.com   time to read: +2 min
REUTERS/Andrew KellyAug 11 (Reuters) - U.S. equity funds saw heavy outflows in the seven days to Aug. 9 amid investor caution ahead of the U.S. inflation data and concerns over credit rating downgrades in the banking sector. By sector, materials, financials and tech saw net sales of $891 million, $554 million and $524 million, respectively. Reuters Graphics Reuters GraphicsMeanwhile, U.S. money market funds and government bond funds attracted $40.88 billion and $4.48 billion, respectively, as investors hunted for safety. U.S. general domestic taxable fixed income and short/intermediate investment-grade funds received about $800 million each in inflows. On the other hand, high yield and loan participation funds saw net sales of $565 million and $419 million, respectively.
Persons: Andrew Kelly, Moody's, Gaurav Dogra, Mark Potter Organizations: New York Stock Exchange, REUTERS, Reuters Graphics Reuters, Wall, Nasdaq, Thomson Locations: New York City, U.S, Patturaja, Bengaluru
Investors ploughed $73.17 billion into money market funds in their biggest weekly net purchase since March 22, data from Refinitiv Lipper showed. U.S. money market funds attracted a net $40.88 billion in inflows while in Europe and Asia net inflows stood at $23.4 billion and $13.15 billion, respectively. Higher-risk equity funds suffered $11.71 billion worth of net selling, the biggest weekly outflow since June 21. Global corporate bond funds drew about $1.16 billion and government bond funds a net $2.71 billion, the biggest amount since July 12. Meanwhile, bond funds faced their biggest weekly net outflow in nine months at a net $1.74 billion.
Persons: Dado Ruvic, Lipper, Gaurav Dogra, Patturaja, Kirsten Donovan Organizations: REUTERS, Reuters Graphics, Federal Reserve, Reuters Graphics Reuters, Global, Thomson Locations: Saudi, China, Europe, Asia, Bengaluru
A growing number of investors appear to be trying to squeeze additional cash from long-term bonds with the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) . "Popular Treasury ETFs, such as [iShares 7-10 Year Treasury Bond ETF ] and [ iShares 20+ Year Treasury Bond ETF ], could lose another 4-8% if yields spike by the end of September," Woodard said. The TLTW presents a strategy to thread the needle and offset declines in bond prices with income from selling call options. The fund works by buying the iShares 20+ Year Treasury Bond ETF (TLT) and then selling call options with strike prices roughly 2% above the market price of the underlying fund. The TLTW also comes with a higher cost than vanilla Treasury funds.
Persons: Bond, , Jared Woodard, Woodard, iShares, Steve Laipply, TLT, Laipply Organizations: Federal, Bank of America, Treasury, ETF, Treasury Bond ETF, BlackRock, SEC
US money market funds draw biggest inflow in four months
  + stars: | 2023-08-04 | by ( ) www.reuters.com   time to read: +1 min
REUTERS/Rick Wilking/File PhotoAug 4 (Reuters) - U.S. money market funds saw robust demand in the seven days to Aug. 2 as investors favoured safer assets on concerns over a U.S. credit rating downgrade and economic reports signalling a still-tight labour market. Investors secured U.S. money market funds worth about $58.56 billion in their biggest weekly net buying since March 29, data from Refinitiv Lipper showed. Reuters Graphics Reuters GraphicsU.S. equity funds drew $133 million worth of inflows, compared with about $2.57 billion worth of net purchases a week ago. U.S. equity growth funds saw net outflows worth $3.48 billion, the biggest since June 7, but value funds had $891 million worth of net buying. Reuters Graphics Reuters GraphicsU.S. bond funds witnessed about $1 billion worth of outflows, the first weekly net selling since June 28.
Persons: Rick Wilking, Lipper, baring industrials, Gaurav Dogra, Shilpi Majumdar Organizations: REUTERS, Investors, Reuters Graphics Reuters Graphics, Reuters Graphics Reuters, Thomson Locations: Westminster , Colorado, U.S, Patturaja, Bengaluru
REUTERS/Jason Lee/Illustration/File PhotoAug 4 (Reuters) - Global money market funds attracted massive inflows in the week to Aug. 2 as investors sought safer assets amid a U.S. credit downgrade and weak economic data from the euro zone and China. Investors poured in a net $67.52 billion into global money market funds during the week, marking the biggest weekly net purchase since March 22, according to Refinitiv Lipper data. The U.S. and the European money market funds drew $58.56 billion and $14.35 billion worth of inflows, respectively, while Asia faced a second weekly outflow, amounting to $360 million. Riskier global equity funds still received inflows worth about $4.45 billion in a second straight week of net purchases. Data for 24,127 emerging market funds showed that investors withdrew about $487 million from bond funds after eight straight weeks of net purchases.
Persons: Jason Lee, Fitch, Gaurav Dogra, Patturaja, Shilpi Majumdar Organizations: Hong, REUTERS, Investors, Reuters Graphics Reuters, AAA, Global, Equity, Thomson Locations: Hong Kong, China, United States, Europe, U.S, Asia, Bengaluru
Investors appear to be growing more comfortable with the path for interest rates and are shifting their fixed income bets accordingly. The list of the most popular bond funds by inflows in recent weeks is dominated by large passive funds. The iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Treasury ETF (VGIT) have both been two of the 10 most popular ETFs of any type over the past month, according to FactSet's flow data. The iShares 3-7 year Treasury Bond ETF (IEI) and the Vanguard Intermediate-Term Bond ETF (BIV) have also seen sizable inflows recently. Broad bond funds will often have longer duration than short-term funds, even if there is no reference to time frame on the label.
Persons: Scott Chronert, Fitch, — CNBC's Michael Bloom Organizations: Citi, Federal Reserve, Treasury Bond ETF, Treasury, Bond ETF, Bond Locations: outflows
How Bond Funds Have Fared During the Fed’s Rate Hikes
  + stars: | 2023-07-29 | by ( Matt Grossman | ) www.wsj.com   time to read: 1 min
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Persons: Dow Jones
According to Refinitiv Lipper data, global money market funds drew investments worth a net $38.74 billion in the week ended July 26, the biggest amount since July 5. Reuters Graphics Reuters GraphicsThe U.S. and European money market funds attracted purchases worth $24.62 billion and $11.84 billion, respectively, on a net basis. Global equity funds drew about $1.3 billion worth of inflows after witnessing a weekly outflow of $2.2 billion the previous week. They also disposed of about $34 million worth of precious metal funds in their ninth weekly net selling in a row. Meanwhile, data for 24,115 emerging market funds showed bond funds received $1.14 billion, the biggest amount in three weeks, while equity funds had a third weekly net purchase worth about $157 million.
Persons: Kai Pfaffenbach, Gaurav Dogra, Patturaja, Varun Organizations: European Central Bank, REUTERS, Federal Reserve, Bank of Japan, Reuters Graphics Reuters, Global, Corporate, Thomson Locations: Frankfurt, Germany, Bengaluru
What Is an Expense Ratio?
  + stars: | 2023-07-24 | by ( E. Napoletano | ) www.wsj.com   time to read: +8 min
The easiest way to think of the expense ratio is the fee you pay to the portfolio manager of your mutual fund. When you invest in an ETF or mutual fund, the fund’s prospectus will state its expense ratio. How expense ratios impact investment returnsBefore you can look at how expense ratios impact your investment returns, it helps to understand what an average expense ratio looks like. While the average active stock fund’s expense ratio was 0.66% in 2022, the average bond fund charged just 0.44%, according to ICI. Remember: It should be easy to find the fund’s expense ratio.
Persons: it’s, Chloe Wohlforth, Russell, Warren Buffett, Peter Lynch —, Merrill Lynch, Morgan Stanley, Justin McCurdy, , , you’re, McCurdy Organizations: Investment Company Institute, ICI, BuySide, SEC, Morningstar Locations: , New York, U.S, Angeles
Global equity funds see first weekly outflow in four weeks
  + stars: | 2023-07-21 | by ( ) www.reuters.com   time to read: +2 min
July 21 (Reuters) - Global equity funds witnessed their first weekly outflow in four weeks in the week to July 19, reflecting concerns over slower growth in China and caution ahead of the Federal Reserve's policy meeting next week. According to Refinitiv Lipper data, global equity funds observed a net $2.67 billion worth of net selling in the week ended July 19, booking their first weekly outflow since June 21. Investors withdrew $3.04 billion from U.S. equity funds while purchasing Asian and European equity funds to the tune of $609 million and $336 million, respectively. Government and corporate bond funds attracted $627 million and $724 million worth of inflows, respectively. Meanwhile, data for 24,134 emerging market funds showed equity funds received $1.1 billion, the biggest weekly inflow since May 3, while bond funds obtained about $568 million, marking a third straight weekly inflow.
Persons: Gaurav Dogra, Patturaja, David Holmes Organizations: Global, Reuters Graphics Reuters, U.S . Commerce Department, Investors, Government, Thomson Locations: China, Bengaluru
YOUR MONEY How to get high rates to work for you
  + stars: | 2023-07-17 | by ( Chris Taylor | ) www.reuters.com   time to read: +4 min
July 17 (Reuters) - There is no doubt that higher interest rates are hard on a many people – especially if you are taking out a loan on a home or a car, or are struggling to catch up with credit-card debt. But for some, steep interest rates are not actually bad news. In fact, 38% of people say they have benefited from higher interest rates during the past year, according to a new survey from Allianz Life Insurance. “That’s the dichotomy: Higher interest rates are both crushing some people and benefiting others at the same time,” says Kelly LaVigne, vice president of Consumer Insights for Allianz Life. That means if you have some savings set aside, it is time to think about how to flip this negative of higher interest rates into a positive.
Persons: , , Kelly LaVigne, Amy Arnott, Morningstar, Arnott, Rowe, Baird, Jeremy Keil, Keil, George Gagliardi, Lauren Young, Aurora Ellis Organizations: Allianz Life Insurance, Consumer, Allianz Life, U.S . Federal Reserve, Morningstar, FDIC, Bills, CIT Bank, BMO Alto, Citizens, Financial, Thomson Locations: New Berlin , Wisconsin, Toronto, Lexington , Massachusetts
A higher interest rate environment has made fixed income exciting, and Bank of America has a couple of stock plays on the theme. The Federal Reserve's series of 10 rate hikes has boosted yields on Treasurys and money market funds. Bank of America analyst Craig Siegenthaler says fixed income reallocation will continue to be a theme, and that could lift the shares of certain asset managers and brokers. "We believe [ BlackRock and Tradeweb ] are the two best ways to invest in fixed income with both retirees and pension plans raising allocations to traditional fixed income over the next 12 months," he said in a Tuesday report. He added investors should "expect sizable flows into fixed income, money markets and private credit over the next 12 months and look for bond trading volumes to increase."
Persons: Craig Siegenthaler, Tradeweb, Siegenthaler, – CNBC's Michael Bloom Organizations: Bank of America, Investment Company Institute . Bank of America, brokerages, LPL Locations: BlackRock
[The stream is slated to start at 1:00 PM ET. Please refresh the page if you do not see a player above at that time.] CNBC's ETF Edge is dedicated to the fastest-growing trend in investing right now: ETFs. Every Monday, Bob Pisani will be joined by a panel of top market participants to offer educational and actionable advice to help you build your best portfolio.
Persons: Bob Pisani Organizations: Edge
The Pimco Multisector Bond Active ETF (PYLD) launched in June, giving investors a way to follow one of the biggest names in fixed income during the volatile bond market. As the fixed income ETF market matures, major asset managers are trying their hand at multisector bond funds. Recent launches include Capital Group's U.S. Multisector Income ETF (CGMS) and BlackRock's Flexible Income ETF (BINC) , which is co-managed by Rick Rieder , the firm's chief investment officer for global fixed income. For financial advisors or investors who want to make investment decisions themselves, there are more targeted bond funds available. "There's a pretty long runway for investors to increase their allocation to fixed income.
Persons: Rick Rieder, Dan Ivascyn, Sonali Pier, D.J, Tierney, you've, Schwab, Schwab's Tierney Organizations: Treasury, Capital, Multisector, Pimco, CNBC, Schwab Asset Management, Fed Locations: Capital Group's, U.S, iShares
Wall Street's glide toward higher stocks and falling bond yields was jolted into reverse Thursday, as surprisingly strong economic data sent bond yields soaring and stocks tumbling . For example, the iPath Series B S & P 500 VIX Short-Term Futures ETN (VXX) and the ProShares VIX Short-Term Futures ETF (VIXY) serve as bets that investor expectations of volatility will go up from here. The UVXY is designed to provide 1.5-times returns of the VIX short-term futures and was up about 8% in midday trading. Rising yields Profiting from rate spikes through bond funds can be a bit tricky. The biggest fund in that space is the iShares Floating Rate Bond ETF (FLOT) , which was little changed on Thursday.
Persons: PFIX, FLOT Organizations: Treasury, Dow Jones, US Treasury
June 30 (Reuters) - U.S. equity funds attracted inflows during the week ending June 28, buoyed by positive growth expectations as robust economic indicators eased concerns about higher borrowing costs. Investors purchased U.S. equity funds of a net $2.1 billion after disposing of about $16.5 billion worth of funds in the previous week, data from Refinitiv Lipper showed. Consequently, U.S. growth funds witnessed inflows of $1.1 billion, rebounding from the $3.1 billion outflows reported the previous week. Reuters Graphics Reuters GraphicsBreaking down the data by size, U.S. large-cap, multi-cap, and small-cap equity funds experienced net inflows of $6.1 billion, $1 billion, and $121 million, respectively. Specifically, U.S. taxable bond funds saw outflows of $2.19 billion, while municipal bond funds recorded net selling of $289 million.
Persons: Lipper, Gaurav Dogra, Chizu Organizations: Investors, Reuters Graphics Reuters, Investor, Thomson Locations: U.S, Patturaja, Bengaluru
Many investors appear comfortable betting on stocks to continue rising after a surprising strong first half, according to fund flow data. Investors even plowed $1.9 billion into the Invesco QQQ Trust ETF (QQQ) , which is up almost 40% so far this year. The flows are notable because investors have been somewhat reluctant to put more money in stocks this year despite the rally. Aggregate Bond ETF (AGG) and the Vanguard Total Bond Market ETF (BND) also saw inflows this week, so some investors are still hedging their bets on stocks. With investors starting to chase the recent rally, all major regions except Europe saw inflows.
Persons: Magesh Kumar Chandrasekaran, — CNBC's Michael Bloom Organizations: Trust, Aggregate Bond, Vanguard, Bond Market, Barclays Locations: Europe
Investors withdrew a net $15.12 billion from global equity funds which had seen net inflows of $16.04 billion a week earlier. The U.S. and European equity funds witnessed outflows of $16.47 billion and $1.81 billion, respectively, while investors pumped about $2.6 billion into Asian funds. Reuters Graphics Reuters GraphicsMeanwhile, investors withdrew a net $15.13 billion from money market funds, their second straight week of outflows. Among commodity funds, investors withdrew $498 million from precious metal funds, their fourth successive week of net selling. They also purchased $812 million of equity funds.
Persons: Jerome Powell, Financials, Gaurav Dogra, Patturaja, Vinay Dwivedi Organizations: Global, European Central Bank, Federal Reserve, Investors, Reuters Graphics Reuters, . House Financial, Bank of England, Healthcare, Energy, Thomson Locations: U.S, outflows, Bengaluru
U.S. equity funds see biggest outflow in 12 weeks
  + stars: | 2023-06-23 | by ( ) www.reuters.com   time to read: +2 min
June 23 (Reuters) - U.S. equity funds recorded their biggest outflows in 12 weeks for seven days ended June 21 as the Federal Reserve's hawkish stance sparked worries of more rate hikes this year. Investors offloaded U.S. equity funds worth a net $16.47 billion in their biggest weekly net selling since March 29. They had bought into funds worth $19.7 billion just a week ago. U.S. equity funds of all sizes recorded outflows, with large caps losing $7.54 billion, small caps shedding $2.63 billion, multi caps giving up $1.04 billion and mid caps dropping $138 million. Reuters Graphics Reuters GraphicsU.S. money market funds also recorded $21.14 billion worth of outflows, in a second consecutive week of net selling.
Persons: Jerome Powell, financials, Gaurav Dogra, Anil D'Silva Organizations: Federal, Investors, Reuters Graphics Reuters, Reuters Graphics Reuters Graphics U.S, Thomson Locations: U.S, Patturaja, Bengaluru
"People see [municipal bonds] as a defensive position for two reasons," said Shannon Saccocia, chief investment officer at NB Private Wealth. "Historically, municipal bonds have had low default rates," wrote Jared Woodard, investment and exchange-traded fund strategist at Bank of America, in a June 12 report. For instance, there's the Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) and the Nuveen New York Quality Municipal Income Fund (NAN) . In select situations, some advisors are recommending closed-end municipal bond funds. Closed-end muni bond funds trading at a deep discount include the BNY Mellon Municipal Income (DMF) and the MFS High Income Municipal (CXE) .
Persons: Shannon Saccocia, Jerome Powell, Jared Woodard, Nisha Patel, Patel, Paul Winter Organizations: Bank of America, Bond, Muni Bond ETF, Vanguard, Income Fund, Five, BNY, Income Locations: York, BNY Mellon
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