U.S. equity funds returned to positive net flows in the week to January 28, taking in $10.73 billion, according to LSEG Lipper data. That figure contrasts with roughly $5.25 billion of outflows recorded in the prior week. The inflows came amid upbeat investor expectations ahead of a slate of earnings from the largest market-cap companies, even as some market participants expressed unease over President Donald Trump’s latest tariff threats.
Sector-focused buying led the advance. Equity sectoral funds attracted $6.07 billion in net investments for the week, the biggest single-week amount since at least 2022. Technology, financials and metals and mining were the leading sector recipients, drawing $1.72 billion, $1.44 billion and $1.39 billion in net investments, respectively.
Those sectoral flows indicate concentrated positioning ahead of the mega-cap earnings calendar, with tech and financials among the primary beneficiaries. Metals and mining funds also saw notable inflows, reflecting interest in that materials segment during the week.
Fixed income and money markets also received fresh capital. Bond funds extended a streak of net purchases into a fourth consecutive week, collecting $13.16 billion in weekly net investments. Within fixed income, investors put the most into U.S. short-to-intermediate investment-grade funds, general domestic taxable fixed income funds and municipal debt funds, contributing $5.31 billion, $3.28 billion and $2.06 billion to those categories, respectively.
Meanwhile, money market funds reversed a two-week run of outflows and posted a net inflow of $9.64 billion for the week.
What this means - The pattern of flows shows renewed appetite for equities ahead of major earnings events, with concentrated interest in select sectors. At the same time, demand for fixed income and cash equivalents remained robust, suggesting investors allocated capital across multiple parts of the market during the week.
Key points
- U.S. equity funds recorded $10.73 billion of net inflows in the week to January 28, reversing approximately $5.25 billion of outflows the prior week.
- Equity sectoral funds logged $6.07 billion in weekly net investments - the largest weekly total since at least 2022 - with tech, financials and metals and mining leading at $1.72 billion, $1.44 billion and $1.39 billion, respectively.
- Bond funds drew $13.16 billion in weekly net purchases, continuing a four-week run, while money market funds reversed two weeks of selling to take in $9.64 billion.
Risks and uncertainties
- Market sentiment could be sensitive to President Donald Trump’s tariff-related statements, which the article identifies as creating jitters among investors - a risk that may affect sectors exposed to trade policy.
- Upcoming mega-cap earnings are a focal point for investors; actual results that disappoint relative to expectations could prompt reversals in equity sector flows, particularly in technology and financials.
- While bond and money-market inflows continued, shifts in interest-rate expectations or broader liquidity needs could change investor demand for fixed income and cash instruments.