U.S. equity funds saw their first weekly outflow since Oct 15, with investors turning cautious despite rising expectations of a December Fed rate cut.
Key Highlights
- $4.56B net outflow from U.S. equity funds (week to Nov 26).
- The S&P 500 is still up 3%+ this week, buoyed by optimism around rate cuts.
- Profit-taking increased as worries grow over stretched tech valuations and volatility following the record 43-day U.S. government shutdown.
By Fund Category
- Large-cap funds: –$144M (first outflow after 5 weeks of inflows).
- Mid-caps: –$1.69B
- Small-caps: –$885M
Fixed Income Strengthens
- U.S. bond funds: +$8.6B inflows (8th straight week).
- Short-to-intermediate gov’t & Treasury funds: +$4.05B (highest since Sept 24).
- General domestic taxable bond funds: +$1.59B
Liquidity Preference Rises
- Money market funds: +$25.28B inflows after two weeks of outflows—showing investors’ defensive posture.