U.S. Equity Funds See Largest Weekly Outflow Since March

U.S. equity funds experienced their largest weekly net outflow since March 18 during the week ending August 26, with investors withdrawing a net $22.33 billion. According to data from LSEG Lipper, the trend was driven by investors reassessing the artificial intelligence outlook ahead of an earnings report from Nvidia Inc. and awaiting remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium.

Large-cap equity funds bore the brunt of the sell-off, recording $24.73 billion in net sales. In contrast, mid-cap and small-cap funds saw modest gains. Sector-specific movements were mixed, as technology funds attracted $1.81 billion while financial-sector funds faced net sales of $1.42 billion.

Fixed-income assets remained attractive, with U.S. bond funds extending a 19-week streak of popularity by drawing $7.12 billion in net inflows. These gains were concentrated in short-to-intermediate government and Treasury funds. Meanwhile, money market funds recorded a second consecutive weekly outflow of $8.58 billion.