Global equity funds posted a net outflow of $23.21 billion in the week through September 16, the largest weekly withdrawal in nine months. Rising oil prices and a Federal Reserve rate hike drove the retreat, while sector funds and gold kept attracting inflows.
Investors pulled a net $23.21 billion from global equity funds in the week through September 16, the largest weekly outflow since December 17, 2025, according to LSEG Lipper data. Crude oil prices climbed to four-month highs during the week, and the move stoked inflation worries and pushed Treasury yields higher, weighing on growth-oriented funds.
Fed hike adds to the pressure
The Fed raised interest rates by 25 basis points on Wednesday and signaled that further increases may be needed to curb inflation fueled by higher energy costs linked to the war in Iran. US equity funds saw the largest withdrawal, with investors pulling a net $31.44 billion — a fourth consecutive week of outflows. European equity funds saw net outflows of $295 million over the same period, while Asian funds attracted net inflows of $6.26 billion.
Sector funds and gold buck the trend
Even as broad equity funds recorded outflows, sector funds kept drawing money in. Weekly inflows into equity sector funds climbed to a six-week high of $4.49 billion, led by technology, financials, and consumer discretionary funds, which took in $1.94 billion, $1.31 billion, and $621 million, respectively. Gold and other precious metals funds attracted $1.17 billion, marking their ninth weekly inflow in the past ten weeks.
Bond markets showed a similar split. Global bond funds attracted just $855 million, the smallest weekly amount since April 1. Investors withdrew $3.85 billion from high-yield bond funds and $1.1 billion from euro-denominated bond funds. Government bond funds added $2.96 billion and short-term bond funds added $1.96 billion. Money market funds recorded outflows of $77.42 billion, ending a two-week streak of net purchases.
Emerging markets extend losses
Emerging-market equity funds posted a second consecutive week of outflows, totalling $1.61 billion. Investors also withdrew $167 million from emerging-market bond funds after six consecutive weeks of inflows. The data covers 29,002 funds tracked by LSEG Lipper.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
