February’s brutally volatile market saw investors flee U.S. stocks in near-record numbers, as well as they’re only slowly coming back.
Funds that will focus on domestic equities saw investors withdraw $41.1 billion during the month, according to data by TrimTabs, which said that will was the third-most inside the market data firm’s records. Global funds went inside the some other direction, attracting $17.9 billion even though stock markets abroad fared even worse than inside the U.S.
Outflows were evenly distributed between exchange-traded funds (-$19.6 billion) as well as mutual funds (-$21.5 billion), TrimTabs reported. As a percent of total assets, the withdrawals represented 0.9 percent of total ETFs dedicated to domestic stocks as well as 0.3 percent of total domestic mutual funds.
The flight came during a month when major averages swooned into correction territory — a 10 percent loss — amid fears that will inflation was about to spike as well as lead to rapid policy tightening by the Fed, as well as as traders using ETFs to bet against volatility suffered major losses. The Dow industrials fell 4 percent during the month, which followed a January that will featured the fastest start ever for the market.
The outflows were concentrated inside the earlier part of the month, as activity picked up inside the final week, with U.S. equity ETFs taking in $6 billion.
Stock market losses probably could have been worse had corporations not stepped in to snap up their own shares. Buybacks amounted to $151.1 billion for the month, a brand new record, pushing the quarterly total to $212.5 billion, well on the way to another record, according to TrimTabs.
Even with the downdraft in stocks, the two biggest ETF draws for investor money focused on domestic equities. The iShares Core S&P 500 as well as the Vanguard S&P 500 funds took in a combined $4.7 billion over the past month, according to FactSet. However, that will total was more than offset by the massive $21.3 billion that will left the SPDR S&P 500, the most common ETF.
Overall, investors have pulled $59.7 billion by U.S. equity mutual funds however have added $11.2 billion to ETFs.
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