Institutional money is pouring into equities at pace. This week alone, ETFs attracted $68.6B in net equity flows. That dwarfs every other asset class combined.
The U.S. led all regions with $19.8B in net inflows this week. Japan came second at $11.6B. China added $9.5B. All three show strong buying pressure, with Japan's flow imbalance hitting 79 — firmly in bullish territory.
The standout divergence is China. Over three months, it drew just $17.7B net — a modest haul given its size. But this week it accelerated sharply to $9.5B. That is a clear trend shift. Money that was cautious on China over the quarter is now moving in fast.
Taiwan also stands out. Its flow imbalance this week hit 96.6 out of 100. That is near-total buying dominance. $5.8B flowed in against just $212M out. Over three months Taiwan has received $25.8B net, so the acceleration continues.
Hong Kong is the clear loser. It shed $1.96B this week. Over three months it has lost $9.9B. The outflow is consistent and deepening, with a flow imbalance of just 14.9 this week. India also slipped into negative territory, dropping $299M in the week.
Developed Europe remains under pressure over three months, with a $1.8B net outflow. This week it turned slightly positive at $648M. Too early to call a reversal.
Tech dominates. Information Technology pulled $13B this week. Over three months it has attracted $77.4B — far ahead of every other sector. Financials added $1.75B this week but that is modest against Tech's haul.
Energy is the biggest loser over three months. It shed $4.9B over 90 days. This week it was nearly flat at negative $2.9M. The sector is struggling to attract conviction.
Communication Services was negative this week at -$278M. Over three months it is also slightly negative. Utilities quietly attracted $368M this week, a small but consistent inflow.
Equities took $68.6B in net flows this week. Fixed income added a solid $16.1B. Together, they leave commodities and currencies behind. Commodities were nearly flat this week after a heavy $30.6B three-month outflow. That commodity exodus has been one of the quarter's defining flows.
On strategy, vanilla passive ETFs dominated at $48.1B. Active funds took $6.9B. The notable shift is in dividends — this week's imbalance hit 95.5, meaning almost all flows were buying. $3.95B went into dividend strategies in seven days. Over three months dividends drew $17.1B, but the weekly pace is accelerating. ESG flipped to a small outflow of -$62M this week, despite a positive $9.5B three-month trend. That is worth watching.
Overall, the tone is clearly risk-on. Investors are buying equities, favouring Asia over Europe, and rotating into Tech and income-generating strategies.
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.
