Investors yanked a record $25bn from US stock exchange traded funds in January even as the market soared. The exodus — the first in nearly a year — is a symptom of heightened wariness after December’s rout. Stocks have since rebounded, buoyed by stronger-than-expected earnings and signs the Federal Reserve will be patient in its bid to raise interest rates. But concerns about China’s slowing economy continue to weigh on the market, making investors considerably more cautious than they were in January 2018, when US equity ETFs raked in almost $31bn. This year, investors are stashing cash in fixed-income funds, forsaking US stocks for emerging-market equities and exiting go-go sector ETFs such as technology in favor of ETFs that try to pick high-quality stocks with stable growth prospects.

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