International equity funds see record inflows as investors rotate away from expensive U.S. technology shares
Global ex-U.S. funds drew 15.4 billion dollars in January as investors sought cheaper valuations. The shift follows rising AI costs and a weaker greenback.
Insights:
Global ex-United States 
US equity funds, including exchange-traded funds (ETFs), recorded a significant surge in capital as investors moved away from high-valuation technology stocks in the United States US. According to data from LSEG Lipper, these funds attracted $15.4 billion in net inflows during January, marking the largest monthly inflow in four and a half years. This shift represents a sizable capital reallocation that is currently impacting relative market performance and regional valuations across the globe.
US equity funds, including exchange-traded funds (ETFs), recorded a significant surge in capital as investors moved away from high-valuation technology stocks in the United States US. According to data from LSEG Lipper, these funds attracted $15.4 billion in net inflows during January, marking the largest monthly inflow in four and a half years. This shift represents a sizable capital reallocation that is currently impacting relative market performance and regional valuations across the globe.The rotation is highlighted by the comparatively weak performance of United States US-focused equity funds, which saw just $5.7 billion in inflows in January, the lowest level in three months. The trend appears to be ongoing, as exchange-traded funds (ETFs) focused on markets outside the United States US drew an additional $1.4 billion in the first week of February. Market participants such as UBS Global Wealth Management, a division of UBS Group AG , and Shelton Capital Management are monitoring these developments as the MSCI World ex USA Index and MSCI United States Index reflect the changing investor sentiment.
US-focused equity funds, which saw just $5.7 billion in inflows in January, the lowest level in three months. The trend appears to be ongoing, as exchange-traded funds (ETFs) focused on markets outside the United States US drew an additional $1.4 billion in the first week of February. Market participants such as UBS Global Wealth Management, a division of UBS Group AG , and Shelton Capital Management are monitoring these developments as the MSCI World ex USA Index and MSCI United States Index reflect the changing investor sentiment.
