Asia Leads a Global Risk-On Surge

China pulled in $9.1B in net ETF flows over the past week. That makes it the single biggest geographic destination for institutional money right now — beating even US-focused funds.

The flow into China is a sharp reversal in tone. Over three months, China attracted just $19.7B net against gross turnover of $338B — with a flow imbalance of only 52.9, barely above neutral. This week's imbalance jumped to 70.5. Buying pressure has clearly strengthened.

Geography: Asia Dominates Weekly Flows

Four of the top five geographic destinations this week are Asian markets. Japan drew $7.6B, South Korea $5.4B, and Taiwan $5.4B. Taiwan's flow imbalance hit 94.7 — almost no selling pressure at all. Emerging Markets broadly took in $3.5B, with a 95.1 imbalance score.

The US still attracted $4.5B in net flows. But with $57.9B of gross inflows offset by $53.4B in outflows, the flow imbalance was just 52 — essentially balanced. Over three months, the US remained the largest destination by volume at $359.5B net, but the weekly data suggests attention is rotating east.

Hong Kong stood out as the week's clearest loser. It bled $998M, with a flow imbalance of just 22.8. Over three months it has lost $9.4B. That trend is not reversing yet.

Sector Rotation: Tech Back on Top, Energy Slips

Information Technology pulled in $7.3B this week. That is the biggest sectoral inflow by far. Over three months, tech led with $77B — so there is no reversal here. Conviction in the sector remains strong.

The notable shift is in Energy. It drew $493M this week — but over three months it has shed $5.3B net, making it the only major sector with a meaningful 3-month loss. The weekly uptick looks more like a bounce than a turn.

Industrials added $841M this week, and $3.2B over three months. Utilities quietly added $312M on a flow imbalance of 76.9 — steady defensive buying beneath the surface.

Financials and Materials are both in net outflow on the week. Financials lost $258M despite heavy gross turnover of nearly $4.1B, suggesting significant repositioning within the sector.

Asset Class and Strategy: Bonds Hold Firm, Active Funds Surge

Equities absorbed $46.5B in net weekly flows. Fixed Income added $16.2B. Both moved in the same direction, pointing to broad risk appetite rather than a flight to safety.

Commodities flat-lined on the week at -$24M. Over three months they lost $31.3B. Investors are not chasing hard assets right now.

On strategy, passive Vanilla funds led with $32.1B. Active ETFs added $5.5B this week — but over three months they took in $225.3B, representing 51% of the Vanilla total. Active is growing fast relative to passive. Value strategies, meanwhile, lost $1.4B over three months. Growth gained $10.6B over the same period.

The overall picture is decisively risk-on. Money is moving into equities, Asia, tech, and active growth strategies — with commodities and Hong Kong as the notable exceptions.