U.S. fund investors snap up international stocks: Lipper

From Reuters - November 9, 2017

NEW YORK (Reuters) - U.S. investors favored international stock markets, pushing $4.1 billion into equity funds focused abroad during the most recent week, dodging risks at home, Lipper data showed on Thursday.

Domestic stocks funds took in just $631 million during the week ended November 8, Lipper said. The data covers mutual funds and exchange-traded funds (ETFs) based in the United States.

The small haul for domestic stocks comes as investors question whether competing Republican proposals to change the U.S. tax code will be merged into a plan that can gain congressional approval this year.

A corporate tax cut would boost profits, but Senate Republicans are unveiling a proposal that differs markedly from legislation detailed by their counterparts in the House of Representatives.

Non-domestic funds have pulled in $149 billion this year, compared to their domestic counterparts, which have recorded outflows of $13 billion.

Cameron Brandt, director of research at EPFR Global, said the record-setting inflows into global-focused funds are less an endorsement of risk-taking than a demonstration of the anxiety investors have about U.S. markets.


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