US equity-focused ETFs and mutual funds saw the largest outflow since mid-May over the latest weekly reporting period.

The $7.612 billion exodus was the third consecutive. US stock funds shed a combined $14.38 billion from August 3 through mid-week, the latest update suggests.

Note that the latest outflow counted as the most pronounced since Nvidia’s game-changing Q1 report.

The flows tide turned in late-May, but despite the ensuing melt-up on Wall Street, there was never a real “all-in” moment on the flows side.

Net US equity fund flows were negative to the tune of nearly $70 billion prior to the debt ceiling resolution in D.C. That outflow was nearly erased as August dawned, but this month’s stock stumble took the wind out of the sails.

Total outflows from developed market-focused stock funds were $8.2 billion over the week. Europe extended its streak of weekly net redemptions to 24. Emerging market equities managed another small inflow, running the streak to seven weeks.

As the figure shows, US flows (and thereby DM flows) still look much better than they did prior to Nvidia’s May report and the debt limit deal, but the buying is on the EM side.

Total net global equity fund flows in 2023 now stand at $77.212 billion, split between nearly $90 of inflows to EM shares and more than $12 billion in net outflows from DM stock funds.

Somewhat amusingly, Chinese equity funds took in another $3.14 billion, the only real flows bright spot over the week. That continues to make for a stark contrast with record overseas selling of Mainland shares through the links, which comes to more than CNY75 billion in August.