Investors took advantage of a recent dip in global markets to load up on technology stocks, pushing inflows into global equity funds sharply higher during the week ending July 1.
According to LSEG Lipper data, a net $10.44 billion moved into these funds — about 25% more than the $8.4 billion recorded the week before.
The MSCI World Index dropped 2.07% last week, weighed down by concerns about concentration risks and questions surrounding spending plans from major tech companies. Despite those worries, analysts held an optimistic view of the broader technology sector’s earnings potential.
William Bratton, head of cash equity research for APAC at BNP Paribas, addressed the outlook in a note last week: “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.”
He added: “All three core components of the tech sector – semis, hardware, and components – are still seeing robust uplifts to F12M earnings.”
Asian equity funds led regional performance with a seven-week-high inflow of $7 billion. U.S. funds brought in $1.03 billion, while European funds attracted $337 million.
Technology sector funds alone pulled in $8.9 billion, a significant rebound from the prior week when investors actually pulled out a net $17.83 billion. Financials funds drew $2.27 billion and healthcare funds attracted $1.52 billion.
Global bond funds continued their strong run, drawing $14.47 billion for a 13th consecutive week of inflows. High-yield bond funds saw their largest single-week intake since June 2025, pulling in $3.61 billion. Euro-denominated and short-term bond funds gathered $2.72 billion and $2.31 billion, respectively.
Money market funds reversed course dramatically, recording $32.55 billion in inflows after the previous week saw $39.36 billion in net outflows.
On the commodities side, gold and other precious metals funds posted a seventh straight week of outflows, totaling $1.85 billion. Energy funds saw net sales of $116 million.
Emerging market equity funds continued to face selling pressure for a 10th consecutive week, with net outflows reaching $5.14 billion. Bond funds in those markets also saw $622 million in withdrawals, according to data covering 28,900 funds.
