U.S. stock ETFs collect record cash in December: TrimTabs

(Reuters) - Investors stormed into equities in December, pouring a record $59.9 billion into U.S.-based domestic stock exchange-traded funds, TrimTabs Investment Research said on Wednesday.

The figure tops the previous monthly record of $50.7 billion set in November.

Stocks have rallied on the potential for lower U.S. corporate taxes and fewer regulations, after the Nov. 8 election gave Republicans who support those policies control of the presidency and the U.S. Congress.

The Russell 2000 has gained more than 15 percent since then.

"U.S. equity ETFs have had inflows on all but six trading days since the U.S. presidential election, and the buying volume has been by far the strongest we've ever seen," TrimTabs Chief Executive David Santschi said in a statement.

"Fund flows tend to be a good shorter-term contrary indicator, so the post-election buying spree bodes poorly for U.S. equities."

TrimTabs' ETF data dates back to 1993, when the first such funds started trading in the United States.

Overall, investors funneled a record $286 billion into U.S.-based ETFs in 2016, BlackRock Inc data showed on Tuesday. Many ETFs are relatively low cost and aim merely to track the market, not to beat it.

(Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)

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