Jun 19, 2020 - Economy & Business

Investors pull out of money market funds for fourth straight week

American flags hanging on Wall Street

Photo: Robert Nickelsberg/Getty Images

Investors pulled just over $33 billion out of money market funds for the week ended June 17, according to data from the Investment Company Institute.

Why it matters: It was the fourth straight week of outflows for the safe-haven vehicle typically used by investors as savings accounts for cash holdings.

The big picture: Money market funds had seen their assets rise to nearly $5 trillion as investors pulled out of riskier plays like stocks and commodities at a record pace over the preceding months.

  • Money market funds have seen a total of $104.74 billion of outflows in the past four weeks.

Yes, but: Until this week, funds were largely flowing into bonds rather than stocks. ICI data and Refinitiv data show that equity funds had seen $38 billion of outflows in the weeks ended May 13 to June 3.

  • The funds saw $13.1 billion of inflows for the week ended June 10, the last week for which ICI equity fund data is available.
  • Data from Refinitiv Lipper shows equity funds saw $25.5 billion in outflows for the week ending June 17.
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