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Equity mutual funds see greatest weekly outflow in more than 5 years

Value Spark: Bob Olstein on the mutual fund industry

A soon-to-come rule for financial advisors is driving even more money out of mutual funds than they were already losing.

Last week, equity mutual funds hemorrhaged $16.3 billion, their greatest outpouring of money since August 2011, according to the Investment Company Institute.

Those outflows "highlight an important trend that has been gaining momentum for some time now and is being accelerated by two primary drivers," Chris Johnson, head of U.S. ETF distribution at RBC Capital Markets, said in an email.

"Actively managed traditional equity mutual funds are, on average, underperforming" lower-cost products, he said. Secondly, "the approaching implementation of the (Department of Labor) Fiduciary Rule is putting a spotlight on fees."