Flows into global equity vehicles accelerated in the week to July 1, with investors using a recent market pullback to increase allocations to technology shares. LSEG Lipper data showed a net $10.44 billion moved into global equity funds, up from $8.4 billion the previous week.
The MSCI World Index declined 2.07% over the same week amid worries over concentration risks and uncertainty about hyperscalers' spending plans. Despite that pullback, analysts remained constructive on the broader technology sector's earnings trajectory.
"Our tech analysts see no reason for the sector's earnings momentum to slow or reverse over the near-term with the upcoming 2Q earnings season expected to be supportive," William Bratton, head of cash equity research for APAC at BNP Paribas, said in a note last week. He added: "All three core components of the tech sector - semis, hardware, and components - are still seeing robust uplifts to F12M earnings."
Regional fund flows were uneven. Asian equity funds recorded a seven-week-high inflow of $7 billion. U.S. equity funds attracted $1.03 billion, while European equity funds drew $337 million.
Sector flows showed a marked tilt toward technology. Technology sector funds pulled in $8.9 billion in the week, rebounding after net sales of $17.83 billion in the prior week. Financials and healthcare also saw positive interest, with inflows of $2.27 billion and $1.52 billion, respectively.
Fixed income and cash instruments continued to attract investor capital. Global bond funds posted inflows for a 13th consecutive week, taking in $14.47 billion. Within that group, high-yield bond funds received $3.61 billion - their largest weekly inflow since June 2025. Euro-denominated bond funds and short-term bond funds added $2.72 billion and $2.31 billion, respectively.
Money market funds reversed the prior week's heavy redemptions, drawing $32.55 billion after net sales of $39.36 billion the previous week.
Commodity-focused funds had mixed fortunes. Gold and other precious metals funds recorded a seventh straight weekly outflow, totaling $1.85 billion in redemptions. Energy funds experienced net sales of $116 million.
Emerging market equity funds continued to face pressure, with net outflows of $5.14 billion, marking a 10th consecutive week of selling. Investors also withdrew $622 million from emerging market bond funds. The flow figures were compiled across 28,900 funds.
Data snapshot
- Global equity fund inflows: $10.44 billion (week to July 1)
- Previous week global equity inflows: $8.4 billion
- MSCI World Index weekly move: -2.07%
- Technology sector funds: $8.9 billion inflow (after $17.83 billion net sales prior week)
- Global bond funds: $14.47 billion inflow (13th consecutive week)
- Money market funds: $32.55 billion inflow (reversing prior week's $39.36 billion net sales)
- Emerging market equity funds: $5.14 billion net outflows (10th straight week)