(Reuters) – U.S. equity funds recorded a large net outflow in the week to July 21, as rising COVID-19 infections caused by the Delta variant of the coronavirus revived fears of renewed shutdowns and an economic slowdown.
According to Refinitiv Lipper data, investors sold a net $10.4 billion in U.S. equity funds in the week, the most in six weeks.
The United States is seeing large COVID-19 outbreaks in parts of the country with low vaccination rates, leading to a surge in hospitalizations and deaths in recent weeks.
Graphic: Fund flows into U.S. equities bonds and money market: https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoyrozpx/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg
Financial sector funds saw net selling of $2.4 billion, while other cyclical sectors such as industrials and mining funds also posted outflows.
Tech sector funds drew in $1.6 billion, the biggest weekly net inflow in five months.
Investors bought U.S. government and municipal funds worth a net $3.1 billion in the week.
Graphic: Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/gdvzyrwyzpw/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
Graphic: Flows into U.S. equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/znpnedzewvl/Flows%20into%20U.S.%20equity%20sector%20funds.jpg
On the other hand, U.S high-yield bond funds saw outflows of $1 billion.
U.S. money market funds received a net $4.64 billion, after six straight weeks of inflows.
Graphic: Flows into U.S. bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/jnvwegwygvw/Flows%20into%20U.S.%20bond%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)