Global equity funds attract $28.16 billion as easing yields boost sentiment

ETMarkets.com

Global equity funds recorded net inflows of $28.16 billion during the week, up from $19.88 billion in the previous week, according to the data.

The benchmark 10-year U.S. Treasury yield fell about 15 basis points last week and then dropped below the psychologically significant 5% level, supporting appetite for riskier assets.

Investor sentiment was also buoyed by encouraging corporate earnings. Nearly 18% of companies in the MSCI All Country World Index reported results for the current reporting season, with about 73% exceeding average analyst estimates, LSEG data showed.

Asian equity funds lead regional inflows

Asian equity funds attracted $11.53 billion during the week, marking their largest weekly inflow since at least December 2022, the LSEG Lipper data showed.

European equity funds recorded net inflows of $9.14 billion, while U.S. equity funds attracted $5.07 billion as investors continued allocating money to stock markets across major regions.

Among sector-specific funds, technology funds attracted $5.05 billion, reversing net outflows of $4.77 billion in the previous week.

Healthcare funds received inflows of $1.83 billion. In contrast, consumer discretionary funds recorded net outflows of $1.29 billion, indicating a more selective approach to sector investments.

Bond funds extend inflow streak

Global bond funds attracted $9.44 billion in net inflows, marking their fifth consecutive week of gains as investors continued to allocate capital to fixed-income assets.

Swiss franc-denominated bond funds led the inflows, attracting $6.8 billion, their largest weekly intake since at least November 2024.

Short-term bond funds received $2.78 billion, while high-yield bond funds recorded outflows of $1.68 billion. Government bond funds also saw withdrawals of $550 million during the week.

Money market funds attracted net inflows of $15.86 billion, reversing the previous week's $47.51 billion outflows, the data showed.

Precious metals funds maintain investor interest

Among commodity-related funds, gold and other precious metals funds attracted $1.29 billion in net inflows, marking their fifth week of net purchases in the past six weeks.

Energy funds also recorded inflows, attracting $41.5 million during the week.

Emerging market equity funds see strongest inflows since August

Emerging market equity funds attracted $6.28 billion during the week, marking their largest weekly net purchases since August 5, according to data covering 29,174 emerging market funds.

However, emerging market bond funds recorded marginal net outflows of $48.72 million, suggesting that investor demand remained stronger for equities than for fixed-income assets in developing economies.