U.S. Equity Funds Attract $1.28 Billion in 40 Days

The U.S. presidential election has triggered a significant shift in global investment patterns, with North American equity funds seeing a substantial inflow of 1.83 trillion won ($1.28 billion) from November 7 to December 13, according to financial data provider FnGuide. This period coincides with the confirmation of Donald Trump's reelection.

In contrast, international equity funds, particularly those focused on China and India, experienced outflows totaling 439.1 billion won. The divergence in returns appears to be driving these capital flows, with the S&P 500 and Nasdaq indices recording rises of 2 percent and 5 percent, respectively, from the U.S. election through December 13.

Impact of Trump's Policies on Global Markets

The average return of North American equity funds was 6.05 percent after the U.S. election, significantly outperforming the -3.71 percent average return of funds focused on other regions. This trend reflects concerns that Trump's America First and protectionist policies, including tax cuts and tariffs, could negatively impact other countries' economies. Additionally, the Republican Party's control of both the Senate and the House enhances Trump's ability to implement his policies.

Outflows from China and India Funds

China equity funds saw the largest outflows, with about 312.4 billion won, or 70 percent of the total outflows, exiting Chinese funds over the past month. Vietnam, which ranks fourth in global trade surpluses with the U.S. this year, also experienced net outflows exceeding 25 billion won due to similar tariff concerns. India saw the second-largest outflows after China after Trump's victory, with 83.7 billion won leaving its funds. Sluggish manufacturing and consumption growth have hindered performance.