China Flips the Script on Global Flows

China ETFs pulled in a net $22.3B in the past week. That makes China the single biggest geographic story right now. The contrast with the prior three months is stark. Over the 3m period, China posted a net outflow of $5.3B. The reversal is sharp.

Geography Flows

The U.S. remains the largest destination by volume. It drew $11.7B net in the past week. Over three months, U.S.-focused ETFs led all geographies with $473.6B in net inflows. That dominance holds firm.

South Korea and Taiwan also show consistent demand. Korea attracted $5.3B this week and $33B over 3 months. Taiwan added $3.4B this week and $18.9B over the quarter. Both carry high flow imbalance scores above 73, signalling strong buying pressure.

Japan is the notable laggard at the weekly level. It drew just $315M net this week despite massive gross flows of $5.2B in and $4.9B out. Over 3 months, Japan led non-U.S. geographies with $185.4B net. The weekly slowdown is worth watching.

The U.K. flipped negative this week, shedding $169M. Germany also bled $100M. Both regions ran outflows over the 3-month window as well, suggesting persistent softness in European allocations.

Sector Rotation

Information Technology is the standout reversal story. Tech posted a $71.5B net inflow over 3 months — the strongest sector by far. This week it swung to a $2.8B outflow. That is a meaningful short-term change in direction.

Financials picked up the slack. The sector pulled in $2.6B net this week, up sharply from $1.8B over the full 3-month period. Investors appear to be rotating out of tech and into banks and financial services.

Energy remains under pressure. It lost $1.2B this week and $4.7B over 3 months. Industrials also shed $630M in the past week, reversing a positive 3-month trend of $3.3B in net inflows.

Utilities and Consumer Staples both saw modest inflows this week. Over 3 months they were in outflow. That defensive tilt at the weekly level is a potential signal.

Asset Class and Strategy

Equities dominate across both timeframes. They attracted $55.1B net this week and $899.4B over 3 months. Fixed income remains the strong second choice. It took in $25.9B this week and $233.4B over the quarter.

Commodities stand out as a reversal. They drew a modest $1.1B inflow this week. Over 3 months, commodities saw a $28.9B outflow. That is the clearest near-term trend shift in the asset class data.

On strategy, passive vanilla funds dominate in volume. Active strategies continue to attract steady flows. $9.6B went into active ETFs this week. Growth strategies pulled in $3.7B this week and $107.2B over 3 months.

ESG reversed course. It bled $497M this week after taking in $6.6B over 3 months. That short-term retreat is notable given the longer trend.

Overall, the tone remains risk-on. Equities and fixed income both attract capital, China is rebounding sharply, and the only real caution signs are in tech and European markets.