Inflows last week into U.S. stock mutual funds and exchange-traded funds were the most in two months, with investors pumping money into stock funds as the S&P 500 rose again to record highs.
Investors placed $11.5 billion into both U.S. stock mutual funds and ETFs in the week ended Oct. 23, according to fund tracker Lipper. Last week’s intake was the largest since Sept. 18, and compares with an inflow of $9.7 billion in week ended Oct. 16.
Traditional U.S. stock mutual funds, excluding ETFs, took in $4 billion, the largest single-week gain since the week of Jan. 9, towering over the $915 million that flowed in during the previous week.
Domestic stock ETFs received $7.5 billion, compared with $8.8 billion a week earlier.
The biggest takers among ETFs all are made up of U.S. stock funds. The market's behemoth, the $156 billion SPDR S&P 500 ETF(SPY5.LN) (SPY), took in $2.9 billion last week. Enthusiasm for tech stocks saw the Nasdaq-100 Index tracking PowerShares QQQ (QQQ) rake in $1 billion, while the SPDR S&P MidCap 400 (MDY) absorbed $750 million.
Demand picked up for funds made up of overseas stocks as well. International equity mutual funds and ETFs took in $4.2 billion last week, also the most in two months. Investors have been particularly keen on Europe, where signs of stability for are cropping up for the first time in years. Investors poured $5 billion into European stock mutual funds and ETFs last week, the most ever, according to Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch.
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Europe-based stock funds have soaked up cash for 17 consecutive weeks.
The S&P is sitting less than one point beneath a new record. Stocks have been pushing higher since lawmakers averted a U.S. debt crisis earlier and as concerns that the Federal Reserve will start to cut back its stimulus efforts this year recede.
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