U.S. Equity Funds Surge in Investor Demand

(Reuters) – U.S. equity funds experienced a notable increase in investor interest during the week ending Nov. 13, propelled by optimism surrounding Donald Trump’s potential return to office, which many believe could improve U.S. corporate earnings.

According to LSEG data, investors purchased a substantial $37.37 billion in U.S. equity funds, marking the largest weekly net purchase since at least January 2014.

There is an expectation that Trump’s policies would benefit the U.S. corporate sector through lower taxes, relaxed regulations, and increased mergers and acquisitions.

The small-cap equity fund segment witnessed strong demand, attracting the highest weekly inflow in four months, at $7.43 billion net. In comparison, the large-cap segment drew $18.89 billion, the largest in six weeks. Multi-cap and mid-cap funds saw net additions of $2.66 billion and $633 million, respectively.

Investors also contributed $4.42 billion to financial sector funds, the highest amount in at least a decade. Additionally, industrials and consumer discretionary sectors attracted inflows of $1.28 billion and $453 million, respectively.

U.S. bond funds continued to see robust demand, with $5.71 billion in net purchases for the 24th consecutive week. General domestic taxable fixed income funds and loan participation funds received significant inflows of $2.5 billion and $2.15 billion, respectively.

Moreover, investors purchased $76.56 billion in money market funds, extending net purchases for a second straight week.