Stock investors make $6 billion bet on S&P 500 ETFs

Stock investors make $6 billion bet on S&P 500 ETFs
Big inflows last week show investors are 'all-in on equities,' analyst says.
JUL 16, 2019

With U.S. stocks at record highs, investors are betting that the party will continue. The three largest exchange-traded funds that track the S&P 500 Index took in a combined $6.2 billion last week, just as the benchmark topped 3,000 for the first time, data compiled by Bloomberg show. (More: Tiny ETF beats tech and everything else in second quarter)​ Of the more than 1,600 U.S.-listed equity ETFs, these three — known by their tickers SPY, IVV and VOO — received more cash than any other funds in one of their best weeks of 2019. Investors are "all-in on equities," Steven DeSanctis, a U.S. stocks strategist for Jefferies, wrote in a Monday report. Much of the cash that flowed into ETFs last week went to large-cap funds designed as core holdings, he wrote.https://cdn-res.keymedia.com/investmentnews/uploads/assets/graphics src="/wp-content/uploads2019/07/CI120267716.JPG"

The sizable inflows come as debate rages over whether or not U.S. stocks can extend their more than 20% return this year. A rate cut from the Federal Reserve later this month is viewed by markets as virtually certain, potentially supporting equities. But there's a creeping concern about the slowing of both the global and domestic economies, just as companies are set to post their first profit decline since 2016. (More: Active managers putting pressure on index funds)​

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