Continued Attraction to US Stock Funds for the Third Consecutive Week
Over the past week, American investors continued their trend of investing in equity funds, marking the third week in a row of net inflows through November 20. This ongoing interest has been fueled by a positive outlook on corporate earnings. However, the volume of inflows was moderated by concerns over the Federal Reserve’s interest rate projections and ongoing geopolitical issues involving Russia and Western countries.
Recent data from LSEG indicates that during the week, US equity funds attracted a total of $2.98 billion in net new investments. This represents a sharp decrease from the previous week’s substantial $37.42 billion in net inflows.
Following the electoral triumph of Donald Trump in early November and robust performances by US corporations, analysts have upgraded their earnings forecasts for US companies for the year 2025 by an average of 1.3% over the past two weeks, as per LSEG’s data. This revision has spurred further interest in equity funds.
During the same period, sector-specific funds in the US also saw positive movements, with a net influx of $1.2 billion. Notably, funds focused on financials, industrials, and consumer staples sectors received inflows of $841 million, $437 million, and $364 million, respectively.
Value-oriented equity funds in the US experienced an addition of $1.51 billion, down slightly from $1.97 billion the week before. Conversely, growth-focused funds saw a net withdrawal of $3.65 billion.
Additionally, a significant $8.29 billion was allocated to US bond funds, the highest weekly net inflow in the past five weeks. Among these, short-to-intermediate term investment-grade funds stood out, receiving a remarkable $4.8 billion, the largest since February 7th.
Other areas such as general domestic taxable fixed income, loan participation, and municipal debt funds also saw healthy inflows, totaling $3.35 billion, $2 billion, and $1.29 billion, respectively.
On the other hand, US money market funds experienced a substantial net outflow of $24.6 billion, following a robust $76.56 billion in net purchases the previous week.
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
