US Equity fund inflows hit one-year high as emerging market flows extend six-week run: Elara Securities

Commodity-related funds also saw increased allocations. Physical industrial commodity funds attracted $4 billion, while precious metal funds received $8.2 billion, both at nine-week highs. Commodity equity funds recorded inflows of $1.8 billion, the highest level in ten weeks.

• US equity fund inflows hit $79 billion, highest in a year
• Emerging market fund inflows rise for sixth week, led by China and Brazil
• Commodity funds see strong inflows, with precious metals at nine-week high

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Global investors sharply increased allocations to US equities and emerging markets in the latest week, with US equity fund inflows reaching a one-year high and emerging market inflows continuing for a sixth straight week, according to Elara Securities’ Global Liquidity Tracker.

US equity fund flows rose to $79 billion, the highest level in a year, driven by large inflows into iShares and Vanguard S&P 500 exchange-traded funds. During the same period, money market funds recorded redemptions of $44 billion, the largest in eight months, indicating a shift in allocations away from cash.

Elara said inflow episodes of this scale into US equities have occurred only four times over the past six years. In previous instances, markets either peaked or traded sideways for extended periods following such inflows.

Emerging market (EM) fund flows remained positive for the sixth consecutive week, rising to a three-month high of $3.2 billion. China recorded inflows of $10.3 billion, a nine-week high, while Brazil attracted $685 million, its strongest inflow in four weeks. Taiwan and South Korea continued to see sustained inflows, and India saw an improvement with inflows rising to an eight-month high of $650 million.

The report noted that global investors have been deploying capital into EMs in a highly correlated manner over the past four months. About 70% of EM countries are currently experiencing positive flow momentum, with the breadth indicator trending higher since May 2025.

Commodity-related funds also saw increased allocations. Physical industrial commodity funds attracted $4 billion, while precious metal funds received $8.2 billion, both at nine-week highs. Commodity equity funds recorded inflows of $1.8 billion, the highest level in ten weeks.