Tech and Japan Lead the Money Rush

Equity ETFs pulled in $68.6B last week. That is the dominant story across every dimension of fund flows right now.

US equities led geography with $19.8B in net inflows. Japan was close behind at $11.6B. China grabbed $9.5B. The standout on flow momentum is Taiwan — its flow imbalance hit 96.6, meaning almost all the money was one-directional buying. That is a near-perfect buying signal from the ETF market.

Geography Flows

The Asia trade is real and broad. Japan, China, Taiwan, and South Korea together attracted over $30B in a single week. Over three months, Japan has pulled in $161.9B — second only to the US at $360.2B. China's 3m figure is a more modest $17.7B despite the weekly surge, suggesting short-term momentum is accelerating into the region.

Hong Kong is the clear outlier. It bled $1.96B last week. Over three months, the outflow reaches $9.9B. Flow imbalance sits at just 14.9 for the week — heavy selling pressure. India also saw net outflows of $299M last week, with a flow imbalance of just 8.9. That is a sharp contrast to the broader Asia enthusiasm.

Developed Europe was flat to negative. The 3m figure shows a $1.79B outflow. The UK and Germany are both drifting. Money is rotating out of Europe into Asia and the US.

Sector Rotation

Technology dominates by a wide margin. IT ETFs took in $13B last week alone. Over three months, that figure is $77.4B — nearly ten times the next-best sector. The flow imbalance of 73.8 for the week confirms sustained buying pressure.

Financials added $1.75B on the week. Industrials and Utilities picked up smaller but positive flows. Energy is the notable loser over three months, with a $4.9B net outflow. Consumer Discretionary is also slightly negative over 3m at -$1.1B. Communication Services bled $278M last week.

The rotation is clear: growth sectors like tech are winning. Cyclical and commodity-linked sectors like energy are losing.

Asset Class and Strategy

Equities took in $68.6B last week against $16.1B for fixed income. The ratio is roughly 4-to-1 in favour of risk assets. Over three months, equities have absorbed $803.6B versus $243B for bonds. Commodities are under meaningful pressure — a $30.6B net outflow over 3m with a flow imbalance of just 38.4.

Active strategies are gaining ground fast. Active ETFs pulled in $6.9B last week and $231.1B over three months — a flow imbalance of 76.9 on the week. Dividend strategies are also seeing strong buying. ESG has flipped: positive $9.5B over 3m, but a small $62M net outflow last week. Value strategies show a 3m outflow of $2B. Growth beats value right now.

The overall tone is firmly risk-on. Investors are buying equities, favouring Asia and tech, and stepping away from commodities and energy.