Investors Turn Away from U.S. Equity in April

U.S. equity outflows were seen in both active mutual funds and index ETFs.

Net new flows to stock and bond funds totaled $28 billion in April, according to Strategic Insight, an Asset International company.

Net investment to equity funds totaled $14.4 billion during the month, driven by a $43.4 billion inflow to international equity. U.S. equity funds shed $29.1 billion during the month with outflows originating from both active mutual funds and index ETFs alike.

International equity has been a top draw for investors the past two months, according to Strategic Insight data.

Taxable bond funds attracted $12.7 billion during April on $4.3 billion of inflows to global bond products. Money market fund net redemptions totaled $77.8 billion for the month.

Average one-month April fund returns for international equity strategies were strong at 3.6%, Strategic Insight reports. U.S. equity and taxable bond fund average returns were modest in April at 0.4% and 0.2%, respectively. Tax-free bond fund returns were lower on average, declining by 0.5%.

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