In July 2025, global equity funds excluding the United States experienced their largest inflows in over four and a half years, with $13.6 billion directed into these markets. This shift reflects investor concerns about the U.S. economy, stretched stock valuations, and a weakening dollar. Concurrently, U.S.-focused equity funds saw outflows totaling $6.3 billion. Emerging market portfolios also recorded their second-largest monthly inflow in four years, according to data from the Institute of International Finance (IIF). Year-to-date performance highlights include MSCI Asia rising 14%, MSCI Europe increasing 19%, and the S&P 500 gaining 7.2%. Additionally, May 2025 marked the second-highest month for net purchases of overseas equities by U.S. investors. Hedge funds underperformed the S&P 500 in July, further underscoring the trend of capital moving away from U.S. equities toward international markets.