Cameron Brandt, Director of Research at EPFR Global, noted that the scale of withdrawals from China-oriented funds was unprecedented and overshadowed trends in other emerging markets. “Last week alone saw over $40 billion in exits,” Brandt remarked. These withdrawals followed a period of robust inflows as Chinese equities approached levels not witnessed since 2015.
As China captured headlines, other markets went under the radar. India experienced outflows of approximately $320 million during the same timeframe. Brandt characterized this as “not terrible, but certainly not impressive,” adding that funds focused on India have “largely flown under the radar.”
Gold attracts the largest investments
In the commodities sector, gold has emerged as the standout choice. Brandt indicated that gold-related funds are currently experiencing the most significant investor enthusiasm within the commodity landscape. This encompasses both funds holding physical gold and those investing in gold-mining enterprises.
The surge in gold investment highlights a demand for security amid global uncertainties. It seems that investors are turning to gold as a hedge while reducing their exposure to riskier equity markets, particularly in China.
Copper demand bolsters Latin American funds
On top of gold’s appeal, copper is influencing investment trends, especially in Latin America. Brandt mentioned that nations like Peru, Mexico, and Chile are reaping benefits due to their status as significant copper producers.
A primary factor driving this trend is the rising demand associated with data center growth. “By some projections, there will be a need for 400,000 tonnes of copper over the next five years,” Brandt highlighted, referring to data centers. This has facilitated consistent inflows into Latin American equity funds as investors gear up for long-term growth in infrastructure related to artificial intelligence and digital services.
Silver flows exhibit volatility
Conversely, silver presents a contrasting narrative. Despite strong price performance, investor flows into silver-centric funds have been erratic. Brandt explained that interest in silver often veers toward speculation. “There’s something about silver that draws speculative interest,” he noted.
He pointed out that flows into silver funds can experience sharp fluctuations from week to week, indicating that many investors remain cautious despite limited supply and increased industrial applications.
At present, gold stands as the primary beneficiary of global fund movements, while copper garners attention through its Latin American connections. Silver, in spite of its recent price surge, continues to witness a more fluctuating and anxious investor response.
Also Read | 2026 global growth risks are overstated, says Nomura’s Robert Subbaraman
Also Read | Tariff overhang weighs on foreign sentiment, but banks and IT offer opportunities: Raymond James
In other emerging markets, Brandt observed that South Korea attracted the most significant inflows. Approximately $2 billion flowed into Korean funds last week, driven by expectations of policy changes, interest in tech firms relating to artificial intelligence, and signs that the US may reduce its latest tariff threats.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
Catch the latest Budget 2026 expectations updates here
Catch all the latest updates from the Q3 earnings here
