WASHINGTON -- Investors withdrew money from stock mutual funds for the 13th consecutive week during the period ended Oct. 17, although cash was pulled out at a slower pace than during previous weeks. Bond funds continued to attract new money at a rapid clip.
The movement of cash was in line with the conservative approach that many investors have taken since the financial crisis of 2008. Money has consistently been withdrawn from stock mutual funds and added to lower-risk bond funds.
Investors withdrew a net $1.4 billion from U.S. stock funds, the Investment Company Institute said in a preliminary report Wednesday.
The total was the smallest weekly amount pulled out of U.S. stock funds during a period in which withdrawals have exceeded deposits for 13 weeks in a row, dating to July 18. In the week ended Oct. 10, a net $2.3 billion flowed out.
Cash was pulled out during the latest week as the Standard & Poor's 500 stock index rose nearly 2 percent. Net withdrawals from U.S. stock funds have continued even as the market has gained 12 percent year-to-date.
The ICI said a net $369 million was withdrawn during the latest week from funds investing primarily in foreign stocks. Those funds attracted cash through most of the first half of this year. But withdrawals have exceeded deposits for 13 consecutive weeks dating to mid-July.
Investors deposited a net $8.9 billion into bond funds, which have attracted new cash in all but one week so far this year. The latest week's total is down slightly from the $9.5 billion in net deposits during the previous week.
Most of last week's bond fund total was from cash flowing into taxable bond funds, which primarily invest in corporate bonds. Those funds attracted nearly $7.6 billion in new cash. Municipal bond funds took in a net $1.3 billion. Those funds invest in bonds issued by state and local governments.
A net $818 million was added to hybrid funds, which invest in both stocks and bonds.
Overall, investors deposited a net $8 billion into long-term mutual funds of all types during the weeklong period, up from net deposits of $7.1 billion in the previous week.