Feb 20 (Reuters) – U.S. equity funds saw a substantial inflow of capital in the week to February 18 on easing worries over a selloff in the technology sector after a cooler consumer price inflation report boosted expectations of Federal Reserve rate cuts.
According to LSEG Lipper data, investors racked up a net $11.77 billion worth of U.S. equity funds, registering their largest net purchase for a week since January 14.
“We maintain an attractive view on the overall U.S. equity market, but investors should consider diversifying concentrated tech positions,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
“Within technology, selectivity is key.”
U.S. equity value funds remained in favour for a second straight week, attracting net inflows of $2.65 billion in the latest week. Growth funds, meanwhile, saw net outflows of $2.28 billion.
U.S. sectoral funds attracted $1.82 billion, a second successive weekly net inflow, with industrials and tech witnessing net purchases of $1.3 billion and $1.19 billion, respectively.
Investors also poured $10.27 billion into U.S. bond funds in a seventh straight week of net purchases.
US short-to-intermediate investment-grade funds, general domestic taxable fixed income funds and short-to-intermediate government and treasury funds attracted a substantial net of $3.61 billion, $2.56 billion and $2.26 billion, respectively.
Money market funds, meanwhile, saw $12.79 billion worth of net purchases, their third weekly inflow in four weeks.
(Reporting by Gaurav Dogra; Editing by Sahal Muhammed)
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