US equity funds suffer outflows as chip stocks slide

July 17 (Reuters) - U.S. ‌equity funds ​recorded ​outflows in the week through July 15, as a selloff in chip stocks ‌and rising U.S.-Iran tensions, outweighed strong corporate earnings ⁠and cooler inflation readings.

They sold U.S. equity funds of ‌a net $4.8 billion logging ‌their first weekly net disposal in three weeks, LSEG Lipper data showed.

Chip stocks came under pressure ​after rallying about 87.75% in the previous quarter. The Philadelphia SE Semiconductor Index has fallen ⁠roughly 8.48% so far this week, with SanDisk, Marvell Technology and ​Intel dropping 26.35%, 20.15% and 11.71%, respectively.

Investors sold a net $7.18 billion in growth funds, ​reversing $4.23 billion in net purchases ‌the previous week. Value funds, meanwhile, attracted inflows for a third consecutive ⁠week, drawing $3 billion.

Among sector funds, technology inflows cooled to a three-week low of $1.57 billion. Healthcare funds attracted a ⁠net $465 million, while investors withdrew about $579 million from consumer discretionary ​funds and $409 million from communication services funds.

U.S. bond funds remained popular for a 13th straight week, attracting $9.89 billion in ‌inflows.

Investors bought $2.38 billion of short-to-intermediate investment-grade funds, $1.47 billion of short-to-intermediate government and ‌Treasury funds, and $1.36 billion of municipal debt funds.

U.S. ⁠money market funds, meanwhile, ‌saw $68.03 billion in ​outflows, the largest weekly withdrawal since April 15.

(Reporting by Gaurav Dogra, Editing by Nick ‌Zieminski)

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