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Data from Morningstar showed U.S. healthcare ETFs have lured
$1.7 billion in the first two weeks of this month after
witnessing outflows in the past three months.
Graphic: Breakdown by sector for fund flows into U.S. equities -
https://fingfx.thomsonreuters.com/
gfx/mkt/gjnvwblkrpw/Breakdown%20by%20sector%20for%20funds'%20flows%20into%20U.S.%20equities.jpg
The news that Pfizer <PFE.N> and German partner BioNTech SE's
<22UAy.F> experimental COVID-19 vaccine was more than 90%
effective based on initial trial results lifted healthcare
stocks last week.
However, increasing COVID-19 cases and proposals for new
lockdowns in the United States have tempered some market
optimism and prompted investors to look for safer stocks.
U.S tech stocks attracted $1.2 billion in the first two weeks of
this month, as they have performed well during the period of
previous economic shutdowns.
"With Covid-19 case counts rising sharply amid the cold weather,
there is sentiment in some circles that economic activity in the
near term could take a hit, especially with a new wave of
shutdowns being proposed with each passing day," said Jeff
Weniger, director of asset allocation at WisdomTree Investments.
"Those concerns tend to witness capital flowing in the direction
of tech stocks, which are the primary beneficiaries when the
market is in a mood for a disinflationary and stagnant economic
backdrop."
Industrials, consumer discretionary and energy sectors also
attracted inflows this month, data showed.
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra, Editing
by Nick Zieminski)
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