ETFs saw their second-biggest week of inflows ever at $31.4 billion as the Dow industrials threaten the 25,000 mark.
The big surge in investor cash, particularly to passive funds, often coincides with market "melt-ups," according to market strategist Ed Yardeni.
Stock-focused funds — both ETFs and mutual funds — have pulled in a net $294.7 billion year to date, according to Bank of America Merrill Lynch.
Three sector ETFs test key resistance levels
1:39 PM ET Fri, 15 Dec 2017 | 03:51
A year during which the market exceeded all expectations ends not with investors backing off but rather with them throwing caution to the wind.
The trend was particularly prevalent among those who prefer index funds, as ETFs saw their second-biggest week of inflows ever at $31.4 billion, according to fund flow data from Bank of America Merrill Lynch.
Active strategies, as expressed through mutual funds, saw huge outflows, with the $22.7 billion leaving the fourth-worst week on record. However, the difference of $8.7 billion still left the equity side of the ledger with a big week.
Speculation continues to build that the bull market is running out of steam, even as the major indexes continue to set records. The Dow industrials are threatening to break 25,000 as 2017 winds to a close, with the index up just shy of 25 percent including Friday's gains as of midday. The blue chips would need to pick up just another 1.5 percent or so to break the 25K barrier...... Surge in investor cash to stocks triggers fear that rally is near an end
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