Finance
Europe, Asia lead global equity fund inflows as investors cut US tech exposure
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Global equity funds see $31.46 billion inflows, led by Europe and Asia, as investors reduce US tech exposure. Bond and commodity funds also attract investments.
European and Asian Equity Funds Attract Investors Amid US Tech Cuts
Global Equity Fund Trends
Feb 6 (Reuters) - Global equity funds saw strong inflows led by Europe and Asia, underscoring a diversification push as investors sought to reduce exposure to volatile U.S. technology shares and spread risk across other markets.
Global equity funds saw net investments of $31.46 billion during the week, marginally lower than the prior week's $35.03 billion net inflows, LSEG Lipper data showed.
European equity funds drew about $14 billion in inflows, the strongest weekly demand since April 30, as the STOXX 600 hit a record high, while Asian and U.S. equity funds attracted $9.59 billion and $5.58 billion, respectively.
Sector Performance
"Gains in Asian and European markets point to opportunities arising from regional fiscal expansion and structural reforms," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
"In today's environment, where risks are higher and outcomes less predictable, we believe diversification across sectors and geographies is especially important."
Bond and Commodity Fund Inflows
In the sectoral space, industrials and metals and mining funds received $2.75 billion and $2.1 billion, respectively, and topped net purchases. The tech sector, meanwhile, faced outflows of $2.03 billion.
Global bond funds were popular for a fifth successive week, drawing in roughly $18.71 billion in net investments in the most recent week.
Short-term bond funds, euro-denominated funds, and high-yield funds saw significant buying interest, with investors adding $2.79 billion, $1.9 billion, and $1.46 billion, respectively.
Money market funds, meanwhile, recorded a weekly net inflow of $90.75 billion, the largest since the $162.52 billion inflow in the week to January 7.
Investors also added $3.08 billion to gold and precious metals commodity funds, marking the largest weekly net purchases in six weeks.
In emerging markets, equity funds saw upbeat demand, drawing $11.89 billion in net purchases for the seventh straight week. Bond funds, however, had a modest $259 million outflow, according to data for a combined 28,709 funds.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Rashmi Aich)
Key Takeaways
- •Global equity funds attracted $31.46 billion in net investments.
- •Europe and Asia lead the inflows, while US tech sees cuts.
- •European equity funds recorded the strongest demand since April.
- •Global bond funds continue to attract significant investments.
- •Emerging markets equity funds see sustained demand for seven weeks.
Frequently Asked Questions about Europe, Asia lead global equity fund inflows as investors cut US tech exposure
1What is an equity fund?
An equity fund is a type of mutual fund or exchange-traded fund that primarily invests in stocks, aiming to provide capital growth and income to investors.
2What are bond funds?
Bond funds are investment funds that invest primarily in bonds and other debt securities, providing regular income to investors through interest payments.
3What is diversification in investing?
Diversification is an investment strategy that involves spreading investments across various financial assets to reduce risk and improve potential returns.
4What are emerging markets?
Emerging markets are countries with developing economies that are experiencing rapid growth and industrialization, often presenting higher investment risks and rewards.
5What is investor sentiment?
Investor sentiment refers to the overall attitude of investors toward a particular market or asset, often influencing their buying and selling decisions.
