Investors added $7.8 billion to U.S.-based mutual and
exchange-traded funds invested in stocks abroad, the 22nd
straight week of inflows and largest since July 2015, the trade
group's data showed. There were $4.3 billion withdrawals from
domestic equity funds for the week.
High-flying domestic equities are giving U.S. investors sticker
shock after an eight-year bull market and upward run following
the U.S. presidential election last year.
"Part of it is the U.S. is expensive, but there are genuinely
good opportunities which are presenting themselves elsewhere,"
said Atul Lele, chief investment officer of Deltec International
Group, citing Japan's equity markets as one of the best
opportunities he sees in the world.
He said economic momentum in the United States is slowing, while
global data improves.
"The U.S. expansion we saw from a few years ago is starting to
expand out to the rest of the world," Lele said.
The money came into foreign funds during the seven days ended
May 3, as anxious markets awaited a presidential runoff in
France on Sunday that pitted centrist Emmanuel Macron's
business-friendly vision of European integration against
euroskeptic Marine Le Pen. Macron won.
U.S.-based bond funds pulled in $7.2 billion during the week,
continuing a strong year for the funds and marking their 19th
consecutive week of inflows, ICI said.
(Reporting by Trevor Hunnicutt; editing by Grant McCool)
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