In the week leading up to August 14, U.S. investors reduced their holdings in equity funds and shifted their focus to safer investments due to ongoing worries about the economy and recent market fluctuations.
During this period, there was a significant net outflow of $8.92 billion from U.S. equity funds, marking the largest weekly selloff since June 12. At the same time, investors moved $16.1 billion into money market funds and $3.35 billion into government bond funds, according to LSEG data.
U.S. large-cap equity funds saw their biggest outflow in nine weeks, with $6.08 billion withdrawn. Small-cap, mid-cap, and multi-cap funds also experienced outflows of $1.41 billion, $404 million, and $72 million, respectively.
In contrast, sectoral funds saw a net inflow of $380 million, ending a four-week streak of withdrawals. Notably, utilities and financials attracted $802 million and $541 million, respectively.
U.S. bond funds continued their trend of attracting investment, with $3.55 billion in net purchases, marking the 11th consecutive week of inflows. Investors put $1.34 billion into short-to-intermediate government and treasury funds and $677 million into short-to-intermediate investment-grade funds. However, they withdrew $948 million from general domestic taxable fixed income funds and $669 million from loan participation funds.
U.S. Investors Shift to Safer Assets Amid Economic Concerns, Equity Funds See Major Outflows
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
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