(Reuters) -U.S. equity funds witnessed their first weekly outflow in six weeks in the week through November 26, as concerns over lofty tech valuations prompted investors to take profits and overshadowed optimism about a possible Federal Reserve rate cut next month.
They divested a net $4.56 billion worth of U.S. equity funds in their first weekly net sales since October 15, LSEG Lipper data showed.
The S&P 500 has risen more than 3% so far this week on expectations of a Federal Reserve rate cut next month. But investors remain cautious as November has been marked by heightened volatility, driven by concerns over stretched tech valuations and the economic impact of a record 43-day U.S. government shutdown.
U.S. large-cap funds saw a net $144 million weekly outflow following five successive weeks of inflows. Investors also ditched mid-cap and small-cap funds worth a total of $1.69 billion and $885 million, respectively.
U.S. bond funds remained popular for an eighth straight week as these funds drew approximately $8.6 billion in weekly inflows.
Short-to-intermediate government and treasury funds secured $4.05 billion, the largest amount for a week since September 24. General domestic taxable fixed income funds also had a net $1.59 billion weekly inflow.
U.S. money market funds, meanwhile, received $25.28 billion worth of inflows after two successive weeks of net sales.
(Reporting by Gaurav Dogra; editing by Philippa Fletcher)
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