February was a topsy-turvy time in the markets, and investors reacted accordingly. According to the TrimTabs Investment Research, $41.1 billion was pulled from U.S. stock funds in February, the third-highest monthly outflows on record (including both exchange-traded funds and mutual funds).
Most of the month’s outflows were concentrated in the first week of the month, when more than $37 billion was pulled from equity products. According to global fund tracker EPFR, this represented the largest one-week outflow in history.
The month’s redemptions, while historic, represented less than 0.5 percent of the $10 trillion in total assets currently held in domestic stock funds. In July 2002, the last month with similar outflows in terms of the dollar amount, the redemptions were much larger by this metric, accounting for what was at the time 1.7 percent of assets.
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