A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly
Index Performance
At the close of Refinitiv Lipper’s fund-flows week ending July 23, 2025, U.S. broad-based equity indices traded positive: S&P 500 (+1.06%), Nasdaq (+0.78%), Russell 2000 (+0.54%), and DJIA (+1.51%). The Bloomberg U.S. Aggregate Bond Total Return Index appreciated 0.98%, marking its second week of positive returns.
Macro Viewpoint
Year-to-date, U.S trade negotiations under the Trump administration have taken on a more assertive tone, with an emphasis on bilateral deals, and using tariffs as leverage in efforts to shift trade imbalances and promote “America First.” The administration has focused on recalibrating trade relationships with key partners including China, Canada, Japan, Indonesia, and the European Union. This week, the U.S established trade agreements with Japan and Indonesia. According to official White House communications, details of the U.S.-Japan trade agreement are as follows: Japan will invest $550 billion to the United States to rebuild core American industries, and imports from Japan are subject to a 15% tariff rate, down from the initial 25% rate. Meanwhile, the U.S.-Indonesia trade deal seeks to eliminate 99% of U.S. exports to Indonesia.
In contrast, trade tensions between the United States and European Union are reigniting as the two governing parties have yet to agree on a favorable trade agreement ahead of the August 1 deadline. All eyes are watching to see if the European Union will have a similar trade package to Japan or will the European Union respond with counter-tariffs.
Earnings season is now underway, with early attention centered on the tech sector as two of the “Magnificent Seven” reported results this week. While the market reaction has been mixed, investor focus remains forward-looking particular around artificial intelligence (AI). Looking ahead, investors are closely monitoring upcoming reports from key mega tech names, with the broader question being, whether the strong AI narratives can reignite market momentum.
Fund Flows by Asset Type
Investor flows this past week showed pronounced risk-off tilts, with money market funds capturing $8,434.77 million in net inflows, reflecting continued demand for liquidity amid macro uncertainty. Fixed Income, alternative, and commodity funds followed, attracting $6,149.86 million, $4.944.33 million, and $1,844.66 million, respectively, as investors sought yield and diversification. Meanwhile, mixed assets and equity funds saw modest outflows of $492.42 million and $1,429.19 million, highlighting a cautious sentiment, despite the market climbing to new highs.
Fund Flows by Lipper U.S. Classifications
Upon taking a deeper dive into the Equity subclass reveals that net outflows were predominately concentrated in broad U.S equity strategies. U.S. Multi-Cap experienced the largest redemption, totaling $2,661.09 million, followed by U.S. Small Cap-$1,783.76 million, U.S Mid Cap-$1,187.34 million, U.S Large Cap-$949.04 million and U.S. Emerging Market Funds-$572.92 million.
Conversely, select segments within the equity space saw robust inflows. U.S. Sector Equity led the gains with net inflows of $2,200 million, closely followed by U.S. Developed International Markets at $2,065.05 million. Additional strength was observed in U.S. World Sector which experienced $1,143.51 million inflows, followed by U.S. Equity Income Funds of $195.70 million and U.S Developed Global Market Funds at $120.70 million.
Within the Fixed Income universe, municipal bond funds recorded a modest net inflow, driven by renewed demand for National Municipal Debt strategies, which attracted $618.46 million in net flows. This positive trend, however, was partially offset by redemptions from Single State Municipal Debt funds, which saw net outflows totaling $51.04 million. This divergence highlights investors preference for diversified national exposure amid the uncertainty surrounding state-level dynamics.
On the taxable side, inflows were positive across the board. Leading the charge, Short/Intermediate Investment Grade strategies attracted $1,746.01 million in net new money, followed by General Domestic Taxable funds at $1,150.48 million and High Yield funds with $897.91 million. Government & Treasury funds garnered $666.60 million, while Short-Intermediate Government funds pulled in $552.70 million. Complementing the trend, World Income Funds and Emerging Market Debt Funds saw inflows of $457.23 million and $111.51 million, amid a changing rate environment.
Performance by Lipper U.S. Classifications
The Japanese Fund classification posted the strongest weekly returns in the equity universe, rising 5.93%, followed by Basic Materials Funds (+4.59%), Alternative Energy Funds (+4.19%), Precious Metals Equity Funds (+3.95%), and Consumer Service Funds (+3.59%). On the other side, India Region Funds (-0.67%) took the biggest drubbing during the week, bettered by Energy MLP Funds (-0.03%), and Options Arbitrage/Option Strategy Funds (0.58%).
Within the Fixed Income universe, Specialty Fixed Income Funds delivered the strongest performance for the week, posting a gain of 1.31%, followed by Emerging Market Debt Local/Hard currency up (+0.90%), U.S. Government Funds (+0.70%), U.S. Treasury Funds (+0.65%), and Corporate Debt Funds Rated A, which returned 0.59%. At the lower end of the spectrum, U.S. Municipal Bonds Funds underperformed, recording a weekly decline of 0.21%.
