Global Navigator: Investors taking an alternative view of the US

Amidst a flurry of executive orders from President Donald Trump, issued in the wake of his inauguration and days after he launched a new meme coin, investors steered over $5 billion into Alternative Funds during the third week of January with over $4 billion of that total going to Cryptocurrency Funds.

Investors also added to their exposure for the more conventional US assets, with US Equity, Bond and Money Market Funds absorbing a combined $68.8 billion. But Technology Sector and Taiwan (POC) Equity Funds attracted minimal inflows as investors continue to reassess the promise of artificial intelligence (AI), both Emerging Markets Equity and Bond Funds added to their respective outflow streaks and Europe Equity Funds experienced net redemptions for the 17th consecutive week.

Other trends captured by EPFR-tracked fund flows during the week ending Jan. 22 reveal:

• Equity Funds posted a collective inflow of $5.9 billion.
• 13th outflow since the beginning of 4Q24 from Emerging Markets Equity Funds.
• Latin America Equity Funds posted their biggest collectively inflow in over two years.
• India Equity Funds chalked up their 12th outflow in four months.
• Flows into Saudi Arabia and Kuwait Equity Funds climbed to 27 and 39-week highs, respectively.
• US Large Cap Blend ETFs absorbed over $5 billion.
• Japan Equity Funds posted consecutive weekly inflows for the first time since early November.
• Investors pulled nearly $700 million out of dedicated UK Equity Funds.
• The headline number for Industrials Sector Funds was the biggest in 27 weeks.
• Leveraged Technology Sector ETFs experiencing their second-largest outflow on record.
• Platinum Funds extended their longest redemption streak since 3Q24.
• Bond Funds pulled in $13.4 billion.
• Money Market Funds reported an inflow of $61.5 billion.
• High Yield Bond Funds posted their biggest collective inflow in two months.
• Outflows from China Money Market and Bond Funds climbed to 15 and 17-week highs, respectively

For further insights, please read the full report.

Disclaimer: All written and electronic communication from ISI Markets and EPFR is for information or marketing purposes only and does not constitute or qualify as substantive research.