Investment in U.S. Stock ETFs Continues in Week 20

Jefferies reported on recent trends in U.S. equity flows, highlighting a mixed investment environment. For the week ending January 1, retail inflows, excluding money markets (MM), totaled $20.7 billion, down from the previous week's inflow of $59.9 billion. Conversely, investment funds excluding money markets experienced outflows of $4.8 billion, reversing the previous week's inflow of $36.6 billion.

Exchange-traded funds (ETFs) continued to attract capital, recording an inflow of $25.6 billion, surpassing the previous week's inflow of $23.2 billion. This indicates that ETFs have seen positive inflows for 37 consecutive weeks. Money market funds also reported an increase in inflows, receiving $26.1 billion compared to the previous week’s $18.1 billion.

In the equity sector, U.S. equity mutual funds faced outflows of $2.4 billion, marking a significant shift from the $37.8 billion inflow observed the previous week. On the other hand, U.S. equity ETFs reported an inflow of $17.6 billion, though this was a decline from the prior week's inflow of $19.0 billion. Nevertheless, this still signifies the 20th consecutive week of inflows for U.S. equity ETFs.

International mutual funds also reversed direction, experiencing outflows of $0.7 billion compared to an inflow of $0.2 billion the previous week. International equity ETFs saw an inflow of $1.6 billion; while still positive, this was less than the $3.6 billion inflow reported in the previous week.