US fund flows re-accelerate, with global equity and bond funds both recording net inflows

Overview

This report tracks global fund flows for the week ending July 29, 2026. Flows related to equities, fixed income, and cross-border FX were broadly positive, with the renewed attractiveness of US assets serving as the central theme. The report argues that the AI boom since the beginning of the year has increased the relative attractiveness of US assets, eased calls from investors to diversify away from US assets, and supported the view that the USD may strengthen moderately.

Core views

The core view is that fund flows into global risk assets remain resilient, with US equity funds in particular driving the renewed acceleration in developed-market net inflows. Fixed income funds also maintained healthy inflows, although flows into emerging-market bonds were mixed and relatively weak. At the sector level, technology funds continued to record the strongest net inflows, while energy funds faced pressure. In FX, improved cross-border inflows into the US were consistent with stronger net demand for the USD.

Analysis framework

The report uses weekly fund flow data to compare one-week changes, four-week totals, and flows as a percentage of AUM across global equity, fixed income, money market, and cross-border FX funds. It further breaks down flows by developed markets, emerging markets, regions, countries, and sector-specific funds to assess changes in asset allocation preferences.

Methodology notes

• Fund flow monitoringWeekly global fund flow tracking

  Net inflows and four-week cumulative inflows

  The intensity of capital allocation across different asset classes and regions is measured through one-week net inflows, four-week cumulative net inflows, and flows as a percentage of AUM.

• FX fund flowsCross-border fund flow methodology

  FX Flows

  The report defines FX flows as cross-border equity and fixed income fund flows based on fund domicile, excluding hard-currency emerging-market bond funds and FX-hedged products.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• US equity funds

  Directly benefit from the renewed acceleration in US fund flows

  Strengths

  Net inflows into developed-market equities were driven primarily by US funds, while cross-border inflows into the US also improved again.

  Weaknesses

  The improvement in fund flows depends partly on enthusiasm for the AI theme, and a cooling of the theme could weaken its sustainability.

  Comparison

  US funds outperformed European funds, which recorded net outflows.

  Risks

  Questions about AI investment returns, renewed investor demand for diversification, and USD volatility.

• Technology funds

  The sector fund most favored by investors

  Strengths

  Continued to record the largest sector-level net inflows, supported by the attractiveness of AI-related assets.

  Weaknesses

  Valuation and earnings-delivery pressures may increase.

  Comparison

  Significantly outperformed energy funds, which recorded the largest net outflows.

  Risks

  AI investment returns falling short of expectations, crowded technology trades, and declining risk appetite.

• Fixed income funds

  Received stable support overall

  Strengths

  Global fixed income funds maintained net inflows, while short-duration and inflation-protected bond funds continued to be favored.

  Weaknesses

  Hard-currency and local-currency emerging-market bond funds recorded net outflows.

  Comparison

  Overall fixed income flows were positive, but EM bond subcategories were weaker than global fixed income flows overall.

  Risks

  Interest-rate volatility, changes in the inflation path, and emerging-market credit and currency pressures.

• USD

  Supported by improved cross-border inflows into the US

  Strengths

  Cross-border fund flows were positive overall, and net demand for the USD ranked among the strongest.

  Weaknesses

  Expectations for USD appreciation remain moderate rather than reflecting a one-way bullish view.

  Comparison

  Alongside the KRW and GBP, it was among the currencies with the strongest net demand.

  Risks

  Concerns about AI investment returns, declining US asset attractiveness, and renewed investor diversification.

• Energy funds

  Sector facing fund flow pressure

  Strengths

  The report did not identify any clear positive factors.

  Weaknesses

  Recorded the largest sector-level net outflows.

  Comparison

  Significantly underperformed technology funds.

  Risks

  Energy price volatility, declining sector risk appetite, and continued flows toward growth and AI themes.

Key data

• Global equity fund net inflows+$63.709bnFor the week ending July 29; the four-week total was +$206.245bn. The report describes this as approximately +$64bn in the main text, compared with +$30bn in the prior week.
• Global fixed income fund net inflows+$12.428bnFor the week ending July 29; the four-week total was +$78.817bn, with continued inflows into short-duration bond funds and inflation-protected bond funds.
• Emerging-market fixed income fund net inflows-$243mnFor the week ending July 29; the four-week total was +$2.137bn, with both hard-currency and local-currency bond funds recording net outflows.
• Money market fund asset change+$5.005bnFor the week ending July 29; the four-week total was -$108.927bn.
• Cross-border FX fund flows+$18.856bnFor the week ending July 29; the four-week total was +$86.990bn, excluding hard-currency and FX-hedged funds.
• Sector fund flow directionTechnology funds had the largest net inflows, while energy funds had the largest net outflowsThe report did not disclose specific amounts.

Impact & implications

The renewed shift in fund flows toward US assets and technology funds reinforces the narrative of stronger relative US attractiveness and moderate USD appreciation. However, more serious questions about the returns on AI investment could reduce enthusiasm for allocating to US assets and revive pressure for diversification.

Risks

• Serious questions about the returns on AI investment could become a major risk to expectations for moderate USD appreciation.
• Net outflows from European equity funds indicate that regional fund flow divergence persists.
• Net outflows from hard-currency and local-currency emerging-market bond funds point to weakness in EM fixed income.
• Continued concentration of inflows into technology funds could create crowded-trade risks.
• Goldman Sachs discloses that the research is based on public information it considers reliable but does not guarantee its accuracy or completeness; its views and forecasts may change.

What to watch

• Whether weekly inflows into US equity funds and cross-border inflows continue to re-accelerate.
• Whether debate over the returns on AI-related investment affects fund flows into US assets and technology funds.
• Whether net demand for the USD, KRW, and GBP can continue.
• Whether European equity funds continue to record net outflows.
• Whether hard-currency and local-currency emerging-market bond funds recover from net outflows.
• Whether changes in money market fund assets shift from a one-week inflow to sustained inflows.