Global equity funds experienced net inflows for a fifth consecutive week ending October 21, driven by easing U.S. Treasury yields and encouraging corporate earnings results, according to LSEG Lipper data. Investors allocated $28.16 billion to global equity funds last week, up from $19.88 billion the previous week.
The 10-year U.S. Treasury yield fell by approximately 15 basis points during the week, dropping below the key 5% threshold for the first time in some time. The decline in yields helped bolster investor appetite for risk assets. Additionally, corporate earnings season has so far provided a positive surprise, with about 73% of the nearly 18% of MSCI All Country World Index constituents that have reported earnings beating analyst expectations.
Regional fund flows were led by Asia, which attracted $11.53 billion—the largest weekly inflow since at least December 2022. European equity funds saw inflows of $9.14 billion, while U.S. equity funds received $5.07 billion. Sector-specific flows were mixed; technology sector funds attracted $5.05 billion, reversing a $4.77 billion net outflow the week prior. Healthcare funds saw an additional $1.83 billion in inflows, but consumer discretionary funds experienced notable redemptions totaling $1.29 billion.
Despite the overall positive flow into equities, the MSCI World Index declined 1.31% on October 21. This drop followed Meta Platforms’ strong earnings report on October 20, which was overshadowed by the company’s announcement of plans to issue non-voting stock. The move reignited concerns among investors about Meta’s growing capital commitments and sparked some selling pressure.
Global bond funds remained favored by investors, recording their fifth straight week of inflows with $9.44 billion added. Swiss franc-denominated bond funds led bond inflows with $6.8 billion—their largest weekly net purchase since November 2024. Short-term bond funds drew $2.78 billion, while high-yield bond funds and government bond funds saw outflows of $1.68 billion and $550 million, respectively.
Money market funds also rebounded, drawing $15.86 billion in net inflows last week after substantial outflows of $47.51 billion in the prior week.
In commodities, funds tracking gold and other precious metals recorded their fifth inflow week in six, receiving $1.29 billion. Energy funds saw a smaller injection of $41.5 million.
Emerging market equity funds attracted $6.28 billion, marking the largest weekly net inflow since early August. However, emerging market bond funds experienced a marginal withdrawal of $48.72 million.
Overall, the combination of easing U.S. Treasury yields and solid corporate earnings has supported sustained investor interest across global equity and bond markets, despite some sector and index-level fluctuations.