Expand chart
Data: Investment Company Institute; Note: Nov. 2019 and Dec. 2019 data are estimates; Chart: Axios Visuals

The historic outflow from equity funds this year likely has a lot to do with the aging demographics of the U.S., analysts at the Investment Company Institute say.

What it means: Shelly Antoniewicz, ICI's senior director of industry and financial analysis, says that the record flows out of U.S. and global equity funds and into bond and money market funds largely reflect older Americans' desire for safety.

  • That desire is partially motivated by "uncertainty with trade and tariffs," but it's also about many baby boomers nearing retirement and shifting from stocks to bonds.
  • "When I map out the percentage of the population 65 and over with bond fund flows ... they’re rising in tandem," she tells Axios.

Details: As of the week ending Dec. 4, a record $186.5 billion has been pulled out of equity ETFs and mutual funds.

  • Equity ETFs have seen net inflows, while mutual funds have posted enormous outflows.

Go deeper: How private equity could disrupt the 2020 election

Go deeper

2 mins ago - Health

Moderna's vaccine spurred immune system response to coronavirus

Moderna's stock rose 16% after hours on this news. Photo: Jakub Porzycki/NurPhoto via Getty Images

Healthy volunteers who took Moderna's coronavirus vaccine candidate appeared to generate an immune system response to the virus, and there were "no trial-limiting safety concerns," according to a new study published in the New England Journal of Medicine.

Why it matters: The phase one trial is still small and does not definitively determine how effective the vaccine is. But Anthony Fauci of the National Institutes of Health, which is running the trial, told the Wall Street Journal that these data make it "pretty clear that this vaccine is capable of inducing quite good [levels] of neutralizing antibodies."

7 mins ago - World

Trump signs bill sanctioning China over Hong Kong security law

Photo: Win McNamee/Getty Images

President Trump announced Tuesday that he has signed a new bill sanctioning Chinese officials in response to Beijing's national security law for Hong Kong, which dramatically curbs the city's political freedoms. He also signed an executive order ending preferential treatment for Hong Kong.

Why it matters: The bill, which will sanction both Chinese individuals interfering in Hong Kong's affairs and the banks that support them, has broad bipartisan support in Congress. Its passage into law is the latest escalation by the Trump administration against the Chinese Communist Party's efforts to strip Hong Kong of its autonomy.

22 mins ago - Health

Fauci on who to trust amid coronavirus: "Stick with respected medical authorities"

When asked on Tuesday who the public can trust during the coronavirus pandemic, Anthony Fauci said that people "can trust respected medical authorities ... who have a track record of giving information and policy and recommendations based on scientific evidence and good data."

Why it matters: Fauci's comments come as the White House tries to sideline the National Institute of Allergy and Infectious Diseases director in the middle of the pandemic. Multiple media outlets received a statement on Monday from an unnamed White House official that listed each time Fauci was "wrong on things" in COVID-19's early days.