Key facts
- US equity funds saw net outflows of $5.11 billion in the week ended October 7.
- This marks the first weekly net sales for US equity funds since September 16.
- US large-cap, mid-cap, and small-cap funds recorded net outflows of $14.08 billion, $1.03 billion, and $834 million, respectively.
- Sectoral funds attracted $5.68 billion in net investments, led by technology funds.
- US bond funds recorded a weekly record of $19.78 billion in inflows.
- Money market funds attracted $68.49 billion, reversing previous outflows.
US equity funds experienced their first weekly outflow in three weeks, with investors withdrawing a net $5.11 billion in the week ending October 7, according to LSEG Lipper data. This shift from the previous two weeks of inflows occurred as investors took profits during a market rally, influenced by concerns over rising Treasury yields and persistently high crude oil prices.
The S&P 500 reached a record high earlier in the week but subsequently eased. The 10-year Treasury yield climbed to its highest level since April 2002, hitting 5.3645%, driven by inflation concerns and impacting market sentiment.
Outflows were observed across US large-cap, mid-cap, and small-cap funds, totaling $14.08 billion, $1.03 billion, and $834 million, respectively. Conversely, sectoral funds saw net investments of $5.68 billion, with technology leading the way with $4.53 billion, followed by utilities and industrials.
In contrast, US bond funds experienced a record weekly inflow of $19.78 billion. Short-to-intermediate government and Treasury funds received the largest allocation in six months at $6.76 billion, with investment-grade and general taxable fixed-income funds also seeing significant purchases. Money market funds also reversed a prior week's outflows, attracting $68.49 billion.