China Steals the Show This Week

China ETFs pulled in $12.3B in the past week. That makes China the single biggest geographic story right now. The surge stands in sharp contrast to the three-month picture, where China sits in outflow territory at -$5.6B. Investors are rotating back into the region at pace.

Geography Flows

Taiwan drew $3.6B over the week. Its flow imbalance hit 90.9 — extreme buying pressure. Japan added $3.0B. Emerging Markets as a whole took in $1.9B with a strong imbalance of 76.7.

Over three months, the U.S. still dominates in absolute terms at $465B of net inflows. Japan runs second at $167B. But the weekly reversal in China is the standout divergence: from a $5.6B three-month outflow to a $12.3B weekly inflow. Something has shifted quickly.

South Korea was the week's sharpest loser at -$1.4B, with a flow imbalance of just 39.3. The U.K. also bled -$237M this week, even as it posted a modest +$2.7B over three months. Developed Europe managed only $501M this week, and sits in the red over three months at -$2.6B.

Sector Rotation

Health Care led all sectors with $1.1B of net inflows this week. Financials added $652M. Energy drew $316M. These are the clear winners on the week.

Industrials flipped sharply negative at -$774M this week. Over three months, Industrials had been positive at $3.3B — so this week's reversal is notable. Materials shed -$233M on the week.

Information Technology is the big three-month story. Tech pulled $67.7B over 90 days. But this week it was near flat, with just $30M net inflow on gross flows of over $11B in each direction. Conviction is balanced, not directional right now. Energy is the opposite: a solid earner over three months at $4.2B but bleeding recently at -$4.2B over the same window.

Asset Class and Strategy

Equity dominated both timeframes. This week saw $35.8B of net inflows into equity ETFs. Fixed income added $25.1B. Commodities shed -$2.7B this week and -$32.0B over three months — a clear and sustained exit.

Active strategies are attracting money fast. This week Active pulled $10.1B, with a flow imbalance of 78.5 — well above balanced. Vanilla passive remains the largest single bucket at $29.6B, but Active's share is rising. Over three months, Active logged $230B of inflows. Growth strategies also ran strong at $105B over three months. Value, by contrast, lost -$2.7B over 90 days.

The overall tone is risk-on: equities winning, bonds healthy, commodities losing, and active managers capturing more of the flow.