The biggest story this week is a sharp reversal in tech sector flows. Information Technology ETFs shed $5.7B over the past seven days. That contrasts sharply with $68.6B in net inflows over the prior three months. Short-term sellers are rotating out of last quarter's winner.
The U.S. remains the top destination. It pulled in $7.0B net this week and $481.8B over three months. Japan is the standout runner-up. Its $6.4B weekly inflow carried a flow imbalance of 70, signalling strong buying pressure. Over three months, Japan attracted $156.3B — the second-largest regional haul globally.
Emerging Markets are holding steady. They drew $2.2B this week with a high flow imbalance of 86, meaning very little selling pressure. Taiwan added $1.5B this week and $19.6B over three months. Both regions show consistent accumulation.
China is the sharpest red flag. It bled $3.0B this week. Over three months the picture is nearly flat at -$857M, suggesting this week's outflow is a sudden deterioration rather than an ongoing trend. South Korea flipped negative too, losing $1.0B this week after posting $32.6B in net inflows over three months.
Tech's $5.7B weekly outflow dominates the sector picture. Every other sector saw either inflows or marginal outflows.
Health Care was the week's top recipient at $1.1B. Energy gained $583M. Consumer Staples, Industrials, and Materials each posted inflows around $300M. These are classic defensive and cyclical names absorbing money leaving tech.
Over three months, Industrials attracted $3.4B and Financials $2.5B — solid rotation plays. Energy, however, reversed: it drew $583M this week but lost $4.3B over three months, suggesting a short-term bounce rather than a trend rebuild.
Equity ETFs dominated this week with $22.0B in net inflows. Fixed Income added $8.2B, suggesting investors are not abandoning bonds. Commodities lost $3.1B this week and $31.7B over three months. That is a persistent and heavy outflow trend.
On strategy, the most notable shift is in Growth vs. Active. Growth ETFs lost $2.1B this week — a stark reversal from $103.5B in three-month inflows. Active strategies pulled in $10.2B this week with a flow imbalance of 77, nearly matching Vanilla passive funds ($11.2B). Over three months, Active attracted $225.2B vs. Vanilla's $424.3B. Active's share of total flows is rising.
Value strategies remain under pressure. They lost $927M this week and $2.5B over three months.
The overall tone is cautious risk-on. Money is still moving into equities and bonds simultaneously, but the rotation out of tech and growth signals investors are trimming concentrated bets and spreading risk more broadly.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
