The foreign inflows in the U.S. equity funds have started “re-accelerating,” putting 2025 on the path to become the second-largest year of record inflows of $136 billion, annualized as of mid-2025.
What Happened: According to an X post by the Kobeissi Letter, since 2020, overseas investors have poured $547 billion into U.S. assets, and the foreign purchases of U.S. assets are on track to reach $138 billion in 2025.
However, out of this $138 billion, the investor interest in U.S. equity funds alone could lead to inflows of about $136 billion, the second-highest after 2024.
Such funds have garnered inflows of approximately $350 billion since the beginning of 2020. “After a brief pause, international buying of US assets is back,” the post highlighted.
According to Yodelar, the top-performing U.S. equity funds of 2025 so far include the following;
| Top U.S. Equity Funds | YTD | 3 Years Annualized | 5 Years Annualized |
| Alger American Asset Growth Fund | -0.73% | 24.03% | 14.10% |
| CT North American Equity 2 Fund | -2.86% | 14.79% | 15.24% |
| Fidelity Index US P Fund | 1.66% | 17.29% | 14.16% |
| HSBC American Index C Fund | -6.15% | 14.52% | 13.77% |
| Invesco EQQQ NASDAQ 100 UCITS ETF | -7.28% | 21.81% | 16.97% |
| iShares S&P 500 Industrials Sector UCITS ETF | 0.06% | 14.62% | 15.34% |
| Schroder QEP US Core Fund | -5.35% | 14.44% | 14.33% |
Why It Matters: U.S. equities took a beating in April amid the tariff-induced volatility, but the major benchmark indices have recovered to trade near their all-time highs following a blip.
While Israel and Iran‘s ongoing conflict poses a threat to the market, analysis of historical data shows that the S&P 500 index drops by 5% and recovers over the next three, six, and 12 months during wars, sans recessions.
Price Action: After falling on Friday, the SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, advanced on Monday. The SPY was up 0.95% at $602.68, while the QQQ advanced 1.39% to $534.29, according to Benzinga Pro data.
The futures of the Dow Jones, S&P 500, and Nasdaq 100 indices were trading lower on Tuesday.
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