Key facts
- Global equity funds saw inflows for a ninth consecutive week, totaling $10.51 billion.
- U.S. equity funds recorded outflows of $7.34 billion for the week ending July 22.
- European equity funds attracted $10.29 billion in inflows.
- Technology sector funds attracted $2.12 billion in inflows.
- Global bond funds saw inflows fall to a 16-week low of $3.34 billion.
- Money market funds continued to see significant outflows.
Global equity funds experienced their ninth consecutive week of inflows, attracting $10.51 billion in the week ending July 22, according to LSEG Lipper data. This sustained demand reflects investor optimism surrounding a robust earnings season, despite geopolitical tensions and sector-specific concerns.
In contrast, U.S. equity funds saw outflows totaling $7.34 billion, marking the second consecutive week of redemptions. This caution was driven by disappointing earnings from Alphabet and Tesla, raising concerns about rising AI investment costs and growth durability, with Microsoft, Amazon, and Meta Platforms set to report next week. U.S. growth equity funds recorded outflows of $8.55 billion, while value funds also saw outflows.
Investors did, however, continue to purchase sector-specific funds for a fourth week, with technology, financials, and healthcare funds attracting inflows. Meanwhile, U.S. bond funds recorded $2.36 billion in outflows, ending a 13-week streak of net inflows, and money market funds saw outflows of $25.17 billion.
European equity funds were particularly strong, drawing $10.29 billion in net purchases, buoyed by expectations of strong quarterly profit growth. Asian funds attracted $4.5 billion in inflows, and emerging market equity funds also saw inflows.