Goldman Sachs weekly fund flows: Technology funds lead inflows as global equity subscriptions slow from the previous week

Why did technology volatility not trigger fund withdrawals?

In the week to 21 October 2026, technology funds recorded the largest net inflows among sector funds, despite recent AI-related volatility in the equity market. Goldman Sachs highlighted that market price movements and the direction of fund subscriptions can diverge: during the volatility, investors continued to increase allocations to technology themes.
Differences between sectors were also pronounced: consumer goods funds recorded the largest net outflows. The observation covers subscriptions and redemptions in sector-specific funds, reflecting investors’ choices among themes and limited in scope to those funds.

Global equity funds recorded net inflows of approximately 56 billion dollars during the week, compared with 65 billion dollars the previous week. Money continued to enter equity funds, but inflows fell by approximately 9 billion dollars from the previous week; technology’s lead coincided with a slowdown in overall equity inflows.
Developed-market inflows were driven mainly by US and Japanese funds. Emerging markets also saw significant net inflows, mainly from funds focused on mainland China, Taiwan and South Korea; inflows into Taiwan and South Korea funds were particularly prominent over the past several weeks, indicating sustained interest in those two markets.

Goldman Sachs believes flows into global fixed-income funds remain well supported. Short-duration, long-duration and inflation-protected bond funds all recorded inflows during the week, reflecting demand across maturities and for inflation protection.
Within emerging-market bonds, however, the directions diverged: hard-currency bond funds continued to record net outflows, while local-currency bond funds recorded net inflows. The appeal of emerging-market bonds therefore needs to be assessed by currency category, as aggregate inflows mask continued outflows from some products.
Over the same period, money market fund assets increased by approximately 29 billion dollars. This figure measures the change in assets and differs from the net inflow measure for equity and bond funds, so the figures cannot be directly combined to calculate transfers of capital.

Cross-border foreign-exchange flows remained positive during the week, with the strongest net demand for the US dollar and South Korean won. The table shows inflows corresponding to the US dollar of approximately 10.127 billion dollars and to the won of approximately 2.776 billion dollars, consistent with the direction of currency demand highlighted on Goldman Sachs’ front page.
Based on the registration locations of underlying funds, this measure tracks cross-border equity and fixed-income fund flows and excludes emerging-market hard-currency bond funds and currency-hedged products. It represents currency demand arising through specific fund channels, not total trading or buying and selling across the entire foreign-exchange market.