Interest in U.S. Equity Funds Declines While Bond Funds Rise

Demand for US Equity Funds Decreases

Recent data reveals a decline in investor interest in US equity funds. In the week ending February 4, there was a total net inflow of $5.58 billion into these funds. However, the previous week saw this amount peak at $10.82 billion. This indicates a decrease of approximately %48 in net inflows into equity funds.

Risk Perception in the Technology Sector is Increasing

Lipper's weekly data shows that the selling wave, particularly in software stocks, has increased the risk perception in the technology sector. This situation resulted in $2.34 billion net outflows from technology funds. When examined based on specific fund sizes, it is noteworthy that large-cap equity funds attracted $1.1 billion in inflows. However, mid-cap funds experienced outflows of $1.59 billion, while small-cap funds saw outflows of $1.67 billion.

Highlights in Sector Distribution

When examined by sector, industrial funds provided the highest inflow with $2.11 billion. Additionally, investments into metal and mining funds amounting to $1.44 billion indicate a reevaluation of sectors.

Strong Interest in Bond Funds Continues

On the other hand, bond funds have seen investor interest for the fifth consecutive week. There was a total net inflow of $11.11 billion into these funds. Short- and intermediate-term, investment-grade bond funds reached $6.34 billion, marking the highest weekly inflow since 2022. Municipal bond funds attracted $2.38 billion, while inflation-linked bond funds managed to draw $1.34 billion in investments.