China Surge Flips the Geographic Story

The biggest single shift this week: China ETFs pulled in $19.0B in net inflows over seven days. That is a dramatic reversal. Over the prior three months, China was a net outflow of $5.0B. A flow imbalance reading of 76 confirms strong buying pressure. Investors who avoided China for a quarter are now piling back in.

Geography: US Still Leads, But the Rotation Is Real

The US remained the top destination at $28.2B net inflow for the week. But its flow imbalance sits at just 62 — solid, not dominant. China's one-week surge at $19.0B makes it the second-largest recipient globally, up from a clear laggard over three months. Taiwan added $3.8B for the week, with an imbalance of 97 — nearly all buying, almost no selling. Japan flipped negative at -$993M this week, despite being the second-largest three-month recipient at $172B. That is the clearest trend reversal in the data. South Korea also slipped into outflow at -$787M for the week, after posting $31.2B over three months. The message: Asian money is rotating out of Japan and Korea and into China and Taiwan right now.

Sector Rotation: Tech Holds, Industrials Crack

Information Technology absorbed $6.6B in net inflows this week. That mirrors the three-month trend, where Tech led all sectors at $71.1B. Consistency here suggests no reversal — tech flows remain durable. Health Care pulled in $1.2B and Financials added $1.3B for the week. Both sit in modest positive territory over three months as well. The sharp turn is in Industrials. Over three months, Industrials was a positive $2.9B. This week it flipped to a -$834M outflow, with an imbalance of just 42. Energy is nearly flat week-on-week at $12M, but the three-month picture shows -$4.5B — a sector under sustained selling pressure that has not yet recovered.

Asset Class & Strategy: Bonds Strengthen, Active Surges

Equities dominated at $64.1B for the week, but Fixed Income stands out for its momentum. Fixed Income drew $24.9B this week with a flow imbalance of 77. Over three months it posted $231.9B. Investors are buying both equities and bonds — a broadly risk-tolerant tone, not a flight to safety. Commodities flipped sharply. Three-month flows were -$27.0B in net outflow. This week they turned positive at $2.7B with an imbalance of 72. It is early, but the reversal is worth watching.

On strategy, passive Vanilla funds led at $55.5B for the week. Active strategies stood out with $8.3B net and a flow imbalance of 75 — the highest of any large strategy category. Over three months, Active gathered $228.3B, cementing a multi-quarter trend. Price-weighted strategies registered -$2.1B this week despite a positive three-month reading, signalling near-term pressure on that niche.

The overall tone is risk-on. Money is moving into equities, bonds, and commodities simultaneously. The China reversal and Japan outflow are the week's defining rotation signals.