Tech Bleeds Cash, Japan Leads Charge

Japan is the week's standout story. ETFs targeting Japanese equities pulled in a net $9.3B over the past seven days. That compares to $155B over three months, meaning demand is not slowing. Flow imbalance hit 73.5 — firmly in buying-pressure territory.

US-focused ETFs remain the largest pool by sheer volume, with $13.7B in net inflows this week. Over three months, US ETFs have absorbed $477B. The week-on-week pace suggests that momentum is holding, though flow imbalance of 57.4 signals a balanced rather than aggressive buying tone.

Geography Flows

Developed market ex-US ETFs posted strong buying pressure this week, with imbalance scores of 85–87 for both the broad developed ex-US and developed ex-North America categories. Emerging markets added $1.4B on the week, sustaining a solid three-month trend of $12.4B. China managed a slim $1.1B net inflow this week, but flows in and out are nearly equal — imbalance just 53. India and the UK both flipped to modest outflows this week, reversing their three-month positive trends. That is a notable short-term shift worth watching.

Sector Rotation

The biggest story in sectors is Information Technology. Tech ETFs shed $6.5B in net flows this week. That is a sharp reversal from a $65.5B intake over the past three months. Imbalance collapsed to 34.8 — solidly in selling territory. Money appears to be rotating out of tech and into other areas.

Consumer Discretionary led gainers at $548M net. Real Estate added $283M. Health Care took in $303M. Industrials attracted $335M. All four posted positive imbalances above 60. Over three months, Energy had been a drain at -$4.6B, and that weakness continued on the week with another $200M inflow — the smallest positive of any major sector.

Consumer Staples saw $222M of inflows this week, reversing a slight three-month negative trend of -$153M. That defensive shift, combined with tech outflows, hints at a rotation toward lower-beta exposures.

Asset Class & Strategy

Equities dominated at $30B in net inflows this week and $878B over three months. Fixed income added $10.1B this week — imbalance of 66.4 pointing to genuine buying pressure. Commodities bled $4.5B this week and $30.5B over three months. Investors are clearly avoiding hard assets.

On strategy, Active funds attracted $9.1B this week — imbalance 74.6, one of the highest readings across all categories. Over three months, active strategies have taken in $226B. Growth strategies, which attracted $103B over three months, saw outflows of $659M this week. That mirrors the tech sector rotation. Low Volatility ETFs quietly added $196M this week with an imbalance of 81.3, reinforcing a defensive tilt at the margin.

Overall, the tone is cautiously risk-on. Equities and bonds both attracted money. But the sharp reversal in tech and the growth-to-defensive rotation suggest investors are repositioning rather than simply adding broad exposure.