Global equity funds attract $10.4 billion in a single week as investors take advantage of the pullback to significantly increase positions in the tech sector

⑴ As of the week ending July 1, global equity funds saw a net inflow of $10.44 billion, up about one quarter from the previous week's $8.4 billion. Investors actively increased their holdings in tech stocks during the main market correction, betting on sustained profit momentum in the sector.⑵ The MSCI Global Index fell 2.07% last week, raising concerns over concentration risk and mega-cap corporate spending plans. However, William Bratton, Head of Asia-Pacific Cash Equity Research at BNP Paribas, pointed out that the three core sub-sectors of the tech industry — semiconductors, hardware, and components — are still experiencing strong upward revisions in 12-month profit forecasts. The upcoming Q2 earnings season is expected to provide support.⑶ Regional fund flows showed clear differentiation. Asian equity funds recorded an inflow of $7 billion, hitting a seven-week high; US and European funds attracted $1.03 billion and $337 million, respectively. After a net sell-off of $17.83 billion the previous week, tech sector funds staged a strong rebound with a weekly inflow of $8.9 billion. The financial and healthcare sectors also attracted $2.27 billion and $1.52 billion, respectively.⑷ Global bond funds demonstrated resilience for the thirteenth consecutive week, with a net inflow of $14.47 billion that week. High-yield bond funds attracted $3.61 billion, marking the largest weekly scale since June 2025. Euro-denominated and short-term bond funds saw inflows of $2.72 billion and $2.31 billion, respectively.⑸ Money market funds recorded an inflow of $32.55 billion, reversing the previous week's net outflow of $39.36 billion, indicating a portion of capital remains cautious. Gold and other precious metals funds experienced the seventh consecutive week of outflows, totaling $1.85 billion. Energy funds saw a net sell-off of $116 million, and emerging markets equity funds recorded their tenth consecutive week of outflows with a net outflow of $5.14 billion, while bond funds were also redeemed by $622 million.