(Reuters) -U.S. investors dumped equity funds in the week to September 10, booking profits at record highs and cutting exposure on caution over lofty valuations and geopolitical tensions in the Middle east and Ukraine.
According to data from LSEG Lipper, investors divested a net $10.44 billion worth of U.S. equity funds - the most since August 6 - in the most recent week.
The S&P 500 hit a record 6,592.89 on Thursday, lifted by expectations the Federal Reserve will cut interest rates three times this
year, pushing its one-year forward price-to-earnings ratio to 24.33, well above the 10-year average of 19.38.
Large-cap equity funds lost a net $18.22 billion, the most in a week since June 18.
Investors also ditched mid-cap funds worth a net $912 million and small-cap funds worth $442 million.
Sectoral funds bucked the trend with a third week of net inflows, to the tune of $3.77 billion, thanks to $3.42 billion flowing to the technology sector.
Investors allocated a net $8.61 billion to bond funds, extending purchases into a 21st successive week.
Short-to-intermediate government and treasury funds attracted a net $2.37 billion, and short-to-intermediate investment-grade funds $1.2 billion.
Net weekly inflows into municipal debt funds were at a three-week high of $2.18 billion.
Money market funds attracted net inflows for a third straight week, drawing $40.05 billion.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Kirsten Donovan)
