“Monster equity inflows” this week show a “capitulation into equities,” says BofA strategist Michael Hartnett.
Equity funds increased assets under management by $14.1 billion in the week ended May 15, with $12.5 billion of that going into broad stock market ETFs.
$14.1 billion in one week is on par with the big equity inflows we saw in January, when everyone was talking about a “Great Rotation” out of bond funds and into equity funds.
(That’s still not happening – bond funds still recorded $3.4 billion in inflows this week, but it was the weakest performance in the past nine weeks.)
Meanwhile, Japanese equity funds had their biggest week ever, taking in $6.8 billion, although Hartnett says the number is “inflated by new coverage of Daiwa ETF that tracks TPX.”
Even European funds got in on the fun, taking in $0.5 billion – the first inflows into Europe in 12 weeks.
Precious metals funds saw $1.1 billion in outflows, extending the streak of outflows to 14 weeks – the longest on record.
The table below shows a breakdown of equity fund flows by region.
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