Money Flows Into U.S., Japan, and Tech

Institutional money moved decisively into equities last week. A net $76.9B flooded into equity ETFs in a single week. That dwarfs every other asset class combined.

Geography Flows

The U.S. led all regions with $31.3B in net inflows over the week. A flow imbalance of 66.7 confirms buyers dominate. Japan was close behind at $13.9B, with an even stronger imbalance of 83.2 — nearly nine buyers for every seller. China pulled in $12.7B on the week, a sharp contrast to its more muted 3-month position where it ranks seventh at $18.7B over three months.

Taiwan stands out. Its flow imbalance hit 95.1 last week — the highest of any major region. Net inflows of $4.0B flowed into Taiwan ETFs, near the same pace as its $23.9B 3-month total. Momentum there is not slowing.

Hong Kong diverged sharply. It posted a $1.4B outflow last week. Over three months, it shed $9.4B. That consistent selling pressure — flow imbalance just 22.5 this week — marks it as the clearest regional avoid.

India also flipped negative, with $435M leaving last week despite generally supportive EM conditions. Its flow imbalance of 6.6 signals near-total selling pressure.

Sector Rotation

Technology dominated sector flows. Information Technology pulled $11.7B in net inflows last week alone. Over three months, that total reaches $74.6B — the biggest sector draw by a wide margin.

Financials and Real Estate took second and third spots this week. Real Estate's $668M inflow is notable — over three months it has gathered $6.7B, suggesting a durable rotation into rate-sensitive sectors.

Energy is the clearest loser. It bled $512M last week. Over three months it lost $4.9B. Communication Services also turned net negative both this week and over three months. Both sectors show weakening conviction from institutional buyers.

Industrials barely broke even last week at $98M, even as its 3-month total sits at $3.1B. The recent deceleration flags possible fading momentum there.

Asset Class and Strategy

Equities dominated at $76.9B net last week. Fixed Income added $8.0B — healthy but clearly secondary. Commodities attracted a modest $516M last week, a notable reversal from a $30.3B net outflow over three months. That 1-week uptick bears watching.

Currencies saw $460M in outflows last week. Over three months the drain reached $6.3B — consistent demand destruction for FX-focused strategies.

On strategy, Vanilla index funds led at $53.4B. Active strategies added $6.5B, maintaining their strong 3-month trend of $230.7B. Dividends ran with a 94.7 flow imbalance — near-universal buying pressure. ESG reversed sharply. It lost $161M last week after absorbing $8.9B over three months, a potential early signal of rotation away from the strategy.

The overall tone is clearly risk-on. Equities, growth markets, and technology are absorbing capital from all directions.