China Surge Breaks the Week's Money Flow Story

$19B flooded into China-focused ETFs in a single week. That compares to a net outflow of $5B over the prior three months. The reversal is the sharpest geographic trend shift in the data.

U.S. ETFs remain the dominant destination. They pulled in $28.2B net this week, with a flow imbalance of 62.4 — moderately bullish but not extreme. Over three months, U.S. funds have absorbed $463.6B, confirming the longer-run home bias.

Taiwan attracted $3.8B this week. Its flow imbalance hit 96.9 — close to pure buying pressure with almost no offsetting outflows. That builds on $19.9B in 3-month inflows. Japan and South Korea are the week's notable laggards. Japan posted a $993M outflow this week despite $172B in 3-month net inflows. South Korea shed $787M this week after a strong $31.2B three-month run. Both look like short-term profit-taking on prior winners.

Sector Rotation

Tech stays on top. Information Technology pulled $6.6B in net flows this week and $71.1B over three months. The flow imbalance of 65.6 this week points to sustained buying conviction.

The sharpest weekly rotation is out of Industrials. The sector bled $834M this week — a notable reversal from $2.9B in 3-month net inflows. That is the biggest sector swing, and it suggests some unwinding of the trade and infrastructure theme that drove earlier flows.

Health Care attracted $1.2B this week and sits on $4.1B over three months. Financials added $1.3B this week. Energy is nearly flat on both timeframes — $12M net inflow this week, $4.5B outflow over three months — pointing to persistent weakness in that sector.

Asset Class and Strategy

Equities dominate. Equity ETFs took in $64.1B this week and $877.8B over three months. The flow imbalance of 65.8 confirms the risk-on tone.

Fixed income is running hot too. Bonds drew $24.9B this week — a flow imbalance of 77.1. Over three months, fixed income has absorbed $231.9B. Investors are not choosing between stocks and bonds; they are buying both.

Commodities flipped. They posted $2.7B in weekly inflows after a $27B outflow over three months. Currency ETFs also reversed — $593M in this week after a $5.9B three-month outflow.

On strategy, Vanilla passive funds dominate with $55.5B this week. Active ETFs are gaining. They pulled $8.3B this week with a flow imbalance of 74.6. Over three months, Active funds absorbed $228.3B — more than half of Vanilla's $416.4B haul, despite far fewer funds. Price-weighted strategies suffered $2.1B in outflows this week, reversing their 3-month positive trend.

The overall tone is clearly risk-on. Money is moving into equities, bonds, and commodities simultaneously — a broadening of appetite rather than a defensive rotation.