Investors played it safe in June, plucking the most cash out of U.S.-based equity funds since the peak of the 2008 global financial crisis as U.S. trade disputes discouraged risk, Lipper data showed on Thursday.
U.S.-based stock mutual funds and exchange-traded funds (ETFs) recorded $36.3 billion in withdrawals overall for the month of June, according to the research service, preliminary figures that would represent the largest withdrawals since October 2008.
The data also showed the funds have posted five straight weeks of withdrawals as the Trump administration’s tariffs on $34 billion of Chinese imports are due to go into effect on Friday.
During the most recent, holiday-shortened week, $8.3 billion moved out of U.S.-based equity funds and high-yield bond funds shed $1.7 billion, Lipper said. U.S. markets were closed on July 4 for the U.S. Independence Day holiday.
The possibility of a trade war has distracted markets from a robust U.S. economic picture, and minutes from the latest Federal Reserve meeting released on Thursday showed monetary policymakers share some of the markets’ concerns.
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