Institutional investors have ended their months-long "buyers’ strike" on U.S. equities, bringing a surge of $114 billion into ETFs in May—highlighting a renewed appetite for American markets amid strategic hedging.
After a period of cautious withdrawal, international institutional investors and hedge funds have re-engaged with U.S. markets, driving a sizeable $114 billion into U.S.-based equity ETFs in May. This marked a notable shift in sentiment, as global capital returned with renewed momentum.
These inflows were carefully managed via currency hedging, mitigating exposure to weaker dollar returns. Notably, Caribbean-based funds contributed $35 billion to the uptick. Broader global flows reflected optimism, with Europe recording $95 billion and Japan attracting $44 billion during the second quarter.
On the fixed-income front, U.S. Treasurys rebounded following earlier sell-offs, while European bonds saw strong inflows. The resumption of global capital flow may signal a turning point for market confidence and investment resilience.
U.S. equities inflows, JPMorgan, institutional investors, ETF purchases, dollar hedging