Equity exchange-traded funds reported $6.5 billion of net redemptions for the week ended May 9, according to data from Lipper.
The SPDR S&P 500 ETF suffered the largest net redemption of the group as $2 billion flowed out of the fund, followed by iShares MSCI Emerging Markets Fund, which suffered $1 billion of outflows.
At the same time, investors padded the coffers of the fund industry (including ETFs and open-end funds), injecting a net $3.4 billion for the week. Conservative asset classes were the recipients of investors’ cash, with money market funds attracting $4.4 billion (its first inflow in 11 weeks), taxable bond funds taking in $4.6 billion, municipal debt funds, for the third consecutive week, drawing in $0.9 billion, while equity funds suffered $6.5 billion in net redemptions.
“During the week, the Dow Jones Industrial Average suffered its longest consecutive losing streak (eight days) since August 2, 2011, as investors contemplated Spain’s partial nationalization of its fourth largest lender, Greece’s struggle to form a coalition government after citizens rejected pro-austerity candidates throughout Europe, and April payroll figures disappointed, climbing just 115,000 versus an expected 163,000,” said Tom Roseen, Head of Research Services, Lipper.