US stock funds gained $10.87 bn as Dow streak continued: EPFR

US bond funds attracted inflows of $1.69 bn, the least in five weeks. Overall, bond funds worldwide took in $3.03 bn after attracting $4.5 bn the prior week

Investors worldwide poured $10.87 billion into funds that hold US stocks in the latest week, with nearly all of the cash flowing into exchange-traded funds as the Dow Jones industrial average extended its record-breaking rally, data from EPFR Global showed yesterday.

The flows into funds that hold US stocks in the week ended March 13 dominated total inflows of $14.1 billion into all equity funds, the Cambridge, Massachusetts-based fund-tracking firm said. The inflows into US stock funds are the most in six weeks.

The high demand showed that investors made opportunistic bets on US stock indexes as the Dow continued to mark record closing highs every day of the reporting period, after first breaking through the prior record on March 5.

"This latest rally has become a big momentum story," said Rick Meckler, president of investment firm LibertyView Capital Management. "It has really begun to pull in a lot of investors who are afraid they'll miss the next move up."

The Dow's nine-day winning streak through March 13 marked the longest consecutive run since November 1996. The benchmark S&P 500 was about one per cent away from an all-time intraday high on March 13.

The Dow was up 1.1 per cent over the reporting period, while the S&P 500 was up 0.85 per cent.

Signs of strength in the US economy, including growth in the labor market and a fall in the jobless rate to a four-year low of 7.7 per cent, and the Federal Reserve's easy monetary policy have advanced the rally in stocks.

Global equity funds, which hold a diverse portfolio of world stocks, attracted $2.2 billion in new cash over the reporting period. The funds have yet to redeem money to investors on a weekly basis this year, EPFR Global said.

Funds that hold Japanese stocks also won fans with inflows of $1.95 billion. Emerging market stock funds, however, saw outflows of $585 million, after modest inflows of $102 million the prior week.

The MSCI world equity index was up just 0.34 per cent over the reporting period.

US bond funds attracted inflows of $1.69 billion, the least in five weeks. Overall, bond funds worldwide took in $3.03 billion after attracting $4.5 billion the prior week.