US equity funds recorded strong inflows in the final week of 2025, supported by robust full-year market gains driven by an artificial intelligence–led rally and rising optimism around corporate earnings.
US equity funds attracted $16.89 billion in net inflows during the week ended December 31, marking a second consecutive week of gains following $18.3 billion in inflows the prior week. Large-cap equity funds accounted for nearly all of the demand, drawing $16.87 billion.
Sector-focused funds posted modest net outflows of $116 million. Healthcare and financial sector funds led the declines, with withdrawals of $502 million and $290 million, respectively.
Money market funds saw a sharp surge in demand, with investors adding $83.71 billion during the week, the largest weekly inflow in four weeks.
Major US stock indexes ended 2025 solidly higher. The S&P 500 rose 16.4% for the year, the Nasdaq gained 20.4%, and the Dow Jones Industrial Average advanced nearly 13%, marking a third straight year of positive returns.
In contrast, US bond funds saw net outflows of $2.09 billion, snapping a 12-week streak of inflows. The pullback was concentrated in short- to intermediate-term government and Treasury funds, which lost $5.43 billion after seeing strong inflows the previous week.
Other fixed-income categories attracted fresh capital. General domestic taxable bond funds recorded $1.17 billion in inflows, while short- to intermediate-term investment-grade funds drew $920 million.
Looking ahead, analysts expect earnings growth of 15.1% in 2026, compared with a projected 12.9% increase in 2025, reflecting continued confidence in corporate profit momentum.
