According to Reuters on March 14, U.S. equity funds received inflows for the week ending March 12, with investors finding comfort in weaker readings despite ongoing concerns about the economic impact of President Donald Trump's trade policies.
During that week, U.S. equity funds recorded net purchases of $4.67 billion, but after a strong February with inflows of around $9 billion, there was a combined outflow of $4.81 billion in the first two weeks of March.
Mark Haefele, chief investment officer at UBS Global Wealth Management, advised investors to stay diversified amid market volatility, highlighting positive potential returns in the United States, AI, and power-and-resources-linked equities for the remainder of the year. He also suggested ensuring portfolios include quality bonds, gold, and alternative investments to navigate geopolitical tensions.
U.S. large-cap funds continued their positive streak with a $8.78 billion net inflow, marking the fifth week in a row. Multi-cap funds saw $479 million in additions, while small-cap and mid-cap funds experienced outflows of $1.32 billion and $1.22 billion, respectively.
Sectoral funds faced a second consecutive week of outflows totalling $3.25 billion. Investors divested from tech, communication services, and consumer staples sectors, amounting to $1.59 billion, $423 million, and $340 million, respectively.
U.S. bond funds remained popular for the tenth week in a row, attracting a net inflow of $8.44 billion. Short-to-intermediate government and treasury funds had a strong week with a $5.39 billion net inflow, the highest since March 2023. Conversely, loan participation funds saw net withdrawals of $1.13 billion after ten weeks of continuous inflows.
For U.S. money market funds, there was a net outflow of $14.62 billion, marking the second weekly outflow in the last six weeks.