Key facts
- Global equity funds saw inflows for the eighth consecutive week, totaling $12.46 billion.
- U.S. equity funds recorded outflows of $4.8 billion in the week through July 15.
- Chip stocks faced pressure, with the Philadelphia SE Semiconductor Index down 8.48% this week.
- Value funds attracted inflows for a third consecutive week, while growth funds saw outflows.
- U.S. bond funds attracted $9.89 billion, marking 13 straight weeks of inflows.
- U.S. money market funds experienced outflows of $68.03 billion, the largest weekly withdrawal since April 15.
Global equity funds continued to attract investor capital for an eighth consecutive week, with inflows totaling $12.46 billion in the period ending July 15. This sustained demand was attributed to robust corporate earnings reports and indications of easing inflation, which tempered expectations for further interest rate hikes by the Federal Reserve. Europe led regional inflows with $9.49 billion, followed by Asia with $5.4 billion.
However, U.S. equity funds experienced outflows of $4.8 billion, marking the first weekly net disposal in three weeks. This downturn was influenced by a selloff in chip stocks, with the Philadelphia SE Semiconductor Index falling approximately 8.48% this week. SanDisk, Marvell Technology, and Intel saw significant declines. Investors shifted away from growth funds, which suffered net sales of $7.18 billion, while value funds attracted $3 billion in inflows for the third consecutive week.
Sector-specific flows showed technology funds attracting $1.57 billion, a three-week low. Healthcare funds saw inflows of $465 million, while consumer discretionary and communication services funds experienced outflows. In contrast, U.S. bond funds remained popular, attracting $9.89 billion for their 13th straight week of inflows. Money market funds, however, saw substantial outflows of $68.03 billion, the largest since mid-April. Gold and precious-metals funds reversed an eight-week selling streak to attract $376 million, while energy funds faced outflows.