Ahead of another stellar earnings report from artificial intelligence (AI) bellwether Nvidia and a delayed US September report showing better than expected job creation, investors stuck to their current playbook. That involves buying technology plays on the dip, moving back into emerging markets asset classes, cutting their exposure to consumer-driven sectors, loading up on Bond Funds while yields are still relatively high, and selectively cutting risk.
The week ending Nov. 19 saw Technology Sector Funds extend their current inflow streak to nine weeks and $46.5 billion, Emerging Markets Equity Funds post their fourth largest inflow so far this year, Emerging Markets Bond Funds tally their 31st inflow during the past 32 weeks and year-to-date flows into all Bond Funds climb past 2024’s record total. Consumer Goods Sector Funds, meanwhile, chalked up their biggest weekly outflow since late 4Q24 and over $2 billion was pulled out of Cryptocurrency Funds.
Both US Equity and Bond Funds continue to attract fresh money despite the recent government shutdown and fears that American consumers are beginning to feel the strains generated by tariffs, inflation, a tightening labor market and a weak dollar. Quarter-to-date, US Money Market, Bond and Equity Funds rank first, second and third in terms of flows. When measured in relative (% of AUM) terms, however, Money Market Fund, greater China and Latin America-mandated groups feature prominently.
The three groups experiencing the heaviest redemptions in US$ terms QTD are SRI/ESG Equity, Consumer Goods Sector and UK Equity Funds. In % of AUM terms, the bottom three are Pacific Regional and Poland Bond Funds and Argentina Equity Funds.
At the single country and asset class fund levels, Peru Equity Funds posted their biggest outflow since late May, Greece Equity Funds extended their longest run of outflows since 4Q24, flows into Brazil Money Market Funds hit a 14-week high and Indonesia Bond Funds took in fresh money for the 29th time during the past 30 weeks. Dividend Equity Funds extended an inflow streak stretching back to late March, redemptions from Inflation Protected Bond Funds climbed to a 31-week high and Physical Gold Funds absorbed another $1.5 billion.
Emerging Markets Equity Funds
For the second week running, investors with an emerging markets’ focus steered their money into fund groups dedicated to the markets seen as leaders in the race to develop and apply artificial intelligence. Combined flows into mainland China, Korea and Taiwan (Province of China) Equity Funds during the third week of November totaled over $6 billion. That represented two-thirds of the headline number for all Emerging Markets Equity Funds.
The latest week saw all the major regional groups and Frontier Markets Equity Funds attract fresh money while, at the asset class level EM Dividend Funds posted their biggest inflow since mid-July and flows into funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates climbed to a seven-week high.
Among the major Asia ex-Japan Country Fund groups, Korea Equity Funds enjoyed the strongest foreign support as funds domiciled overseas recorded their biggest collective inflow since mid-June. Mainland China-mandated funds enjoyed solid domestic support but saw redemptions from foreign domiciled China Equity Funds climb to an eight-week high. Interest in China State Owned Enterprise (SOE) Funds remains strong with that group pulling in fresh money for the seventh straight week.
Interest in Brazil’s commodity story, and the growing share of those commodities going to China, is also holding up. Brazil Equity Funds posted their largest weekly inflow since 4Q21. Managers of diversified ‘allocator’ funds are being more cautious. Brazil’s current weighting among actively managed Global Emerging Markets Equity Funds remains 140 basis points off its peak in 4Q22. But actively managed Global ex-US Equity Funds have lifted their allocation to Brazil to levels last seen in 2017.
EMEA Equity Funds posted another collective inflow as South Africa Equity Funds pulled in another $96 million, offsetting the biggest redemption from Africa Regional Equity Funds in over 18 months. Saudi Arabia Equity Funds posted their biggest inflow since mid-July during a week when oil prices remained pinned to the $60 a barrel mark and US President Donald Trump hosted – and warmly praised – Saudi leader Mohammed bin Salman.
Developed Markets Equity Funds
Market volatility driven by questions about the trajectory of US interest rates and the profitability of artificial intelligence (AI) applications did not stop investors from steering over $17 billion into EPFR-tracked Developed Markets Equity Funds during the third week of November. That took their year-to-date total past the $310 billion mark. Last year’s number at this point was $357 billion, on the way to a final total of $475 billion.
US Equity Funds chalked up their 10th consecutive inflow, thereby extending their longest inflow streak since 4Q24 despite the continuing absence of retail support. Overseas domiciled funds posted their second outflow of November and their eight biggest of 2025 as the US dollar remained in the bottom quintile of EPFR’s weekly G10 Currency Ranking model. To the north, Canada Equity Funds racked up their biggest inflow since the first week of April.
Also in the bottom two quintiles are the euro and the British pound, reflecting the lackluster outlook for most of the major European economies. During the latest week, investors added to their regional exposure by way of Europe Regional Equity Funds but pulled out of most single country mandated groups. That included those dedicated to the ‘Club Med’ markets, with Spain Equity Funds posting back-to-back outflows for the first time in three months and Italy Equity Funds experiencing net redemptions for the fifth time during the past six weeks.
Also hit with redemptions were UK Equity Funds as the country awaits the ruling Labour Party’s second budget. Sentiment towards the UK has been bearish for some time. As EPFR sister company CEIC observed in a recent note to clients, “Chancellor of the Exchequer Rachel Reeves will deliver the UK’s Autumn Budget on Nov. 26 at a moment of economic malaise. Reeves’ challenge is maintaining fiscal discipline while stimulating economic growth [and the] UK’s relatively weak productivity (measured in real output per hour worked) is central to Reeves’ fiscal dilemma. Lower productivity will constrain Britain’s long-term potential output, thereby reducing the future tax base and fiscal capacity.”
Productivity growth remains a bright spot for Japan, which is again struggling to sustainably boost domestic demand in the face of rising prices, a shrinking population and changing trade dynamics. Japan Equity Funds posted a solid inflow during the latest week as investors positioned themselves for the $115 billion stimulus package that the country’s new government hopes to pass before the end of the year.
The largest of the diversified Developed Markets Equity Fund groups, Global Equity Funds, extended their current inflow streak on the back of commitments to Global ex-US Equity Funds which narrowly offset redemptions from funds with fully global mandates.
Global sector, Industry and Precious Metals Funds
With Nvidia’s latest earnings due on the final day of the latest reporting period and markets buffeted by bearish assessments of artificial intelligence’s return on the massive investments made in it, Technology Sector Funds were front and center among the 11 major EPFR-track Sector Fund groups in mid-November. They were one of only three groups to record inflows, while the other eight experienced net redemptions ranging from $114 million to $1.4 billion.
Consumer Goods Sector Funds recorded the biggest outflow of any group, with US-mandated funds driving a headline number that was last exceeded in late 4Q24. Recent earnings reports from US majors Target and Home Depot disappointed investors looking for signs that a variety of headwinds are sapping American consumers.
Also seeing money flow out, in part because of questions about growth in key markets, were Financial Sector Funds. Concerns about bank exposure to souring private lending is also weighing on sentiment. Regional Bank Funds experienced net redemptions for the fourth week running, the longest such streak since the first quarter.
Technology Sector Funds ended the week on a high note after AI bellwether Nvidia unveiled an earnings report showing revenues up over 60% year-on-year during the third quarter. EPFR’s daily stock-level flows and allocation data shows that the majority of funds holding Nvidia stock increased their holdings ahead of that earnings call.
Healthcare/Biotechnology Sector Funds absorbed fresh money for the eighth week running as investors, seeking alternatives to the AI story, respond to the sector’s attractive valuations, defensive characteristics and improving narrative around several major pharmaceutical plays.
Bond and other Fixed Income Funds
The week ending Nov. 19 saw flows into EPFR-tracked Bond Funds move into record-setting territory, with the year-to-date total now standing at $820 billion. The latest influx came despite concerns about the sustainability of US, Japanese, French and British sovereign debt trends and uncertainty about the next moves by the US Federal Reserve and the Bank of Japan.
There were some signs of risk aversion at the asset class level. High Yield Bond Funds saw over $2 billion redeemed as they posted their fourth outflow during the past six weeks. Before that, the group only recorded one outflow between the last week of April and the first week of October. Commitments to Bank Loan and Collateralized Loan Obligation (CLO) Funds were well off the pace seen in the first and third quarters and Mortgage-Backed Bond Funds tallied their biggest outflow since early 4Q22.
US Bond Funds attracted over $10 billion for the third straight week as foreign domiciled funds extended a run of inflows stretching back to late June. Sovereign Bond Funds saw inflows accelerate for the third straight week, lifting the collective total to its highest level in two months. Flows to funds with socially responsible (SRI) or environmental, social and governance (ESG) mandates climbed to a 16-week high.
Among the Emerging Markets Country Fund groups, China Bond Funds attracted over $1 billion with sovereign and corporate mandated funds attracting roughly equal amounts of fresh money. In the primary markets, a €4 billion Eurobond issue by China’s government was more than 20 times oversubscribed. Elsewhere, redemptions from Russia Bond Funds hit a 47-week high and South Africa Bond Funds chalked up their seventh consecutive inflow.
Europe Bond Funds absorbed over $3 billion for the third time quarter-to-date, with investors again favoring corporate-mandated funds over their sovereign counterparts. Flows into retail share classes hit their highest level since mid-1Q24 and Sweden Bond Funds set a new weekly inflow record.
Did you find this useful? Get our EPFR Insights delivered to your inbox.
