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U.S. equity funds see robust inflows on corporate earnings optimism
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U.S. equity funds see robust inflows on corporate earnings optimism
Nov 15, 2024 12:27 PM

(Reuters) - U.S. equity funds witnessed a significant boost in investor demand in the week through Nov. 13, fueled by optimism that Donald Trump's return to office would enhance the outlook for U.S. corporate earnings.

According to LSEG data, investors acquired a massive $37.37 billion worth of U.S. equity funds in their largest weekly net purchase since at least January 2014.

Investors expect that Trump's policies would boost the U.S. corporate sector with lower taxes, more lenient regulation and consolidation across industries through mergers and acquisitions.

The small-cap equity funds segment saw robust demand, securing the largest weekly inflow in four months at $7.43 billion net. Meanwhile, the large-cap segment attracted $18.89 billion, the most in six weeks, with multi-cap and mid-cap funds receiving net additions of $2.66 billion and $633 million, respectively.

Investors pumped $4.42 billion into financial sector funds, the biggest amount in at least a decade. Industrials and consumer discretionary also drew $1.28 billion and $453 million worth of inflows, respectively.

U.S. bond funds continued to attract strong demand, drawing in $5.71 billion in net purchases for the 24th consecutive week. General domestic taxable fixed income funds and loan participation funds saw significant inflows, receiving $2.5 billion and $2.15 billion respectively.

Investors, meanwhile, snapped up $76.56 billion worth of money market funds, extending net purchases into a second straight week.

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