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U.S.-based stock mutual funds and exchange-traded funds (ETFs)
netted $2 billion in the seven days through Wednesday, the most
cash in four weeks, according to the data.
Emerging markets stock funds pulled in $968 million and debt
funds focused on that region attracted $250 million, the most in
six weeks, Lipper said.
Investors' apparent willingness to take on risk comes even as
markets wrestle with ongoing U.S. trade negotiations with Canada
and unresolved trade issues with China. Yet, during the week,
the U.S. also struck a deal in principle over trade with Mexico.
Emerging markets are being hit by concerns over trade and the
consequences of a strong dollar that have helped to weaken
countries from Turkey to Argentina, which owe debt that is
denominated in dollars.
Tom Roseen, head of research services for Thomson Reuters'
Lipper unit, said the U.S. stock market has three things going
for it: an accommodative Federal Reserve, strong corporate
profits and a relatively optimistic outlook on the potential for
trade conflict to be resolved.
Each of those factors is making investors a bit more willing to
buy the dip in emerging markets.
"We looked at China as being the engine of growth and I think
we'll see them return to being the engine of growth," said
Roseen.
"If these trade issues get resolved it could be a boon for the
whole world."
(Reporting by Trevor Hunnicutt; editing by Phil Berlowitz)
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