Trump election sparks record US equity inflows

Added 18th November 2016

Donald Trump’s election victory has triggered an almost unprecedented move into US equities. According to Lipper fund flows data, American investors funnelled a record net sum of $27bn (£21.6bn, €25.2bn) to US equity ETFs during the seven days after the election.

Trump election sparks record US equity inflows

Total net flows amounted to $23.7bn as actively managed US equity funds continued to see net outflows. This still is the third largest weekly net inflows figure since Lipper began tracking flows in 1992. The outflows from actively managed funds occurred despite a massive increase in sector dispersion since the election result, which is supposed to benefit active managers: as you can see in the chart below, financial services stocks are up more than 10% since the election, while consumer staples are down 4%.

Investors directed the bulk of the inflows to broad-market products tracking the S&P 500 and Russell 2000 indexes. However, the SPDR Financial Select Sector ETF was the third most popular product, welcoming $5.2bn in net new money.

Great Rotation

In a sign US investors believe domestic equities will profit disproportionately from Trump’s expected ‘America First’ approach, they sold off non-US equities, which in aggregate saw net outflows of $3.8bn.

American investors also seem to believe that Trump’s election has dealt the final blow to a decades-long bond bull market. As treasury yields spiked, investors sold off a net $17.4bn in US Treasury money market funds, and another net $8.7bn in other bond funds.  

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Tjibbe Hoekstra

Senior Reporter

Tjibbe joined Expert Investor as a senior reporter in March 2014. Before moving to London he worked as a financial news reporter for various news outlets in Amsterdam, including Reuters and ANP, the main news agency in the Netherlands. He also worked for Fondsnieuws, a website and magazine for finance professionals in the Netherlands. Tjibbe holds a MSc in Public Administration and a post-graduate diploma in Journalism.

Features

Economics of ESG investing driving demand in Europe

Economics of ESG investing driving demand in Europe...

A growing number of institutional investors in Europe are embedding ESG analysis in their investment processes in response to regulatory pressure, consumer demand and a rising appetite for new sources...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA International Fund Links Forum 2017
IA International Fund Links Forum 2017

Thursday 14 September

The Langham, London

IA Future Advisory Forum Europe 2017
IA Future Advisory Forum Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Best Practice Adviser Awards Europe 2017
IA Best Practice Adviser Awards Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Best Practice Adviser Awards South Africa 2017
IA Best Practice Adviser Awards South Africa 2017

Thursday 5 October
The Vineyard Hotel, Cape Town

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...