U.S. technology funds attracted $14.3 billion in the week ended July 1, marking the second-largest weekly inflow on record, even as broader U.S. equity funds posted their biggest weekly withdrawals since March, according to Bank of America Global Research data shared by The Kobeissi Letter.
The inflows lifted the four-week average for technology fund investments to a record $9 billion per week, putting the sector on pace to attract roughly $152 billion this year, an all-time high.
Tech Continues to Dominate Investor Flows
Investors poured a record $19.2 billion into the sector two weeks earlier and withdrew $9.3 billion the following week, The Kobeissi Letter added.
The data follows a sharp technology selloff last week, triggered by weaker-than-expected U.S. jobs data, which prompted investors to reassess expectations for Federal Reserve policy.
BREAKING: US technology funds attracted +$14.3 billion in inflows in the week ending July 1st, the 2nd biggest weekly inflow on record.
— The Kobeissi Letter (@KobeissiLetter) July 5, 2026
This follows -$9.3 billion in outflows the prior week and a record +$19.2 billion in inflows two weeks earlier.
This brings the 4-week average… pic.twitter.com/DN2yMIF1Rz
Investors Rotate Into Technology
While technology funds continued attracting capital, broader U.S. equity funds recorded $17.2 billion in outflows during the week, the largest weekly withdrawal since March, according to the data.
The Kobeissi Letter said investors are aggressively rotating into technology even as money flows out of the broader U.S. equity market.
ETF Exposure
The inflows are likely to benefit some of the largest technology exchange-traded funds, including Vanguard Information Technology ETF (NYSE:VGT), State Street Technology Select Sector SPDR ETF (NYSE:XLK), iShares U.S. Technology ETF (NYSE:IYW) and Fidelity MSCI Information Technology Index ETF (NYSE:FTEC), which collectively manage hundreds of billions of dollars in assets and provide broad exposure to U.S. technology companies.
Technology equity ETFs are among the largest sector funds in the U.S. market, with more than 100 funds managing over $500 billion in combined assets.
Benzinga edge rankings indicate VGT has a Momentum score in the 82nd percentile and a positive price trend across the short, medium and long term.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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