UPDATE 1-Investors favor stock funds over bonds, reversing 2016 trend

(Adds details on mutual funds and ETFs, analyst quote, table,

byline)

By Trevor Hunnicutt

NEW YORK, Dec 29 (Reuters) - U.S.-based stock funds pulled

in $11.8 billion in the week ended Dec. 28, data from Lipper

showed on Thursday, ending 2016 with an enthusiasm for stocks

that had been lacking for the better part of the year.

Investors pulled $775 million from taxable bond mutual funds

and exchange-traded funds during the same period, marking the

third straight week of withdrawals,

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