U.S. investors continued their buying streak in equity funds for the third consecutive week through November 20, driven by rising corporate earnings optimism. However, inflows moderated compared to the previous week’s surge, reflecting caution around Federal Reserve rate policies and ongoing geopolitical tensions between Russia and the West.
Data from LSEG shows net inflows into U.S. equity funds reached $2.98 billion during the week, a sharp drop from the $37.42 billion net additions seen a week earlier. The slower momentum came despite market confidence bolstered by a post-election rally following Donald Trump’s early-November victory and stronger-than-expected corporate earnings. Analysts have revised their 2025 earnings forecasts for U.S. companies upward by 1.3% on average over the past two weeks.
Sectoral Highlights
U.S. sectoral equity funds recorded $1.2 billion in net inflows, with financials, industrials, and consumer staples leading the pack:
- Financials: $841 million
- Industrials: $437 million
- Consumer Staples: $364 million
Bond Fund Inflows Surge
The bond market witnessed substantial interest, with $8.29 billion flowing into U.S. bond funds — the largest weekly net purchase in five weeks. Within this category:
- Short-to-intermediate investment-grade funds secured $4.8 billion, marking the biggest weekly inflow since February 7.
- General domestic taxable fixed income funds attracted $3.35 billion.
- Loan participation funds and municipal debt funds received $2 billion and $1.29 billion, respectively.
The data reflects a mixed sentiment among investors balancing earnings optimism with macroeconomic and geopolitical uncertainties.