U.S. equity funds post $31.44 billion outflow for fourth straight week

  • U.S. equity funds recorded $31.44 billion in net outflows during the week to September 18.
  • $28.71 billion left U.S. large-cap funds, while small-cap funds attracted $568 million.
  • The Federal Reserve raised interest rates by 25 basis points and signaled further tightening may be needed.

U.S. equity funds recorded $31.44 billion in net redemptions in the week to September 18, extending their outflow streak to four weeks, as four-month-high crude prices increased inflation concerns and lifted Treasury yields. The Federal Reserve raised interest rates by 25 basis points and signaled that further tightening may be needed to contain inflation linked to higher energy costs from the war in Iran. Large-cap, mid-cap and multi-cap funds posted outflows, while small-cap funds attracted $568 million. Equity sector funds drew $2.29 billion, led by financials, consumer discretionary and technology. Global bond-fund inflows eased to $554 million, while money market funds lost $58.87 billion. A separate global-funds tally covering the week through September 16 recorded a $23.21 billion equity outflow, alongside regional, emerging-market and commodity-fund flows reported previously.

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