Investors return to equity funds amid earnings optimism
U.S. equity fund inflows surged in the week ending January 28, as investors positioned for upcoming mega-cap earnings despite concerns over President Donald Trump’s latest tariff threats. According to LSEG Lipper data, these funds attracted $10.73 billion in new investments, reversing the $5.25 billion in outflows seen the previous week.
Bond funds maintain steady inflows
Bond funds continued their streak of net purchases for the fourth consecutive week, drawing $13.16 billion in weekly inflows. Investors primarily bought short-to-intermediate investment-grade funds, general domestic taxable fixed-income funds, and municipal debt funds, with net investments of $5.31 billion, $3.28 billion, and $2.06 billion, respectively.
Market sentiment driven by earnings and safe-haven demand
The inflows into equity and bond funds suggest investors are positioning for strong corporate earnings while still seeking safety in fixed-income assets. Analysts say the combination of upbeat mega-cap earnings expectations and selective risk hedging has fueled this trend.
