U.S. equity funds attract $39 billion in inflows as BofA strategists remain risk-averse

Huoxing Finance reports that, on October 16, a recent report from Bank of America showed that U.S. equity funds saw a weekly inflow of $39 billion, and at the current pace, annual inflows for the year could reach a record-high $636 billion. U.S. Treasury bonds recorded inflows for the 16th consecutive week—the longest streak since August 2024. However, the Bank of America strategy team led by Michael Hartnett remains “risk-averse,” citing rising real yields, divergent price movements in AI and bank stocks, and potential volatility from the midterm elections. According to EPFR data for the week ending October 14, global equity funds attracted approximately $64.5 billion in inflows. U.S. large-cap stocks saw $32.5 billion in inflows, while growth, value, and small-cap stocks received $1.6 billion, $1.2 billion, and $1.1 billion respectively. Technology stocks led with $10.7 billion in inflows, while financial and consumer stocks experienced outflows of $1.4 billion and $600 million, respectively. Emerging markets attracted $17.7 billion in inflows, Japan saw $400 million, and Europe experienced a $1.5 billion outflow. Safe-haven assets also drew interest: U.S. Treasuries saw $3.6 billion in inflows, investment-grade bonds received $3.5 billion, municipal bonds attracted $4.5 billion, and emerging market bonds gained $800 million; high-yield bonds posted a third consecutive weekly outflow of $900 million. Cash funds saw outflows of $53.1 billion, gold received only $100 million in inflows, and cryptocurrencies experienced an outflow of approximately $600 million, while bond funds overall recorded net inflows of $11.8 billion. These capital flows contrast with Bank of America’s cautious stance.