Japan ETFs pulled in $14.0B in net flows last week. That makes Japan the single biggest geographic destination for fresh institutional money right now. The flow imbalance sits at 79 — strong buying pressure.
The picture over three months backs the trend. Japan attracted $144.1B in net flows over 3m. It ranks second only to the US over that period. Investors have been rotating into Japanese equities for the better part of the quarter.
The US drew $6.3B in net inflows over the past week. That sounds large but is modest relative to its $60T AUM base. China told a sharply different story. It bled $6.6B in a single week. Its flow imbalance fell to 34 — well into selling territory. Over three months, China still shows a positive $18.5B. Last week's reversal is a notable trend break.
Emerging Markets ex-China posted $2.4B in net inflows for the week. Flow imbalance reached 82.5. That suggests selective EM buying that deliberately avoids China exposure. Developed Europe attracted $1.1B for the week. Over three months, Europe sits barely above zero at -$641M, meaning this week's pick-up is a mild positive shift.
Technology saw the biggest outflow of any sector last week. It lost $5.8B in net flows. Flow imbalance was just 37.5. That is a sharp turn: over three months, Tech led all sectors with $73.6B in net inflows. Investors appear to be trimming tech exposure after months of heavy accumulation.
Industrials took the top spot for weekly sector inflows at $1.3B. Consumer Discretionary followed with $888M. Health Care added $823M. Energy also turned negative on the week at -$321M, consistent with its 3m deficit of -$7.4B. The rotation pattern is clear — money is moving out of high-growth sectors into cyclicals and defensives.
Equities absorbed $28.6B in net flows last week. Fixed Income was not far behind at $19.0B. Both categories showed solid buying pressure. Commodities added $2.5B for the week. That contrasts with a 3m outflow of -$30.2B from commodities, suggesting very early signs of a reversal in a previously punished asset class.
On strategy, Active ETFs attracted $7.2B last week and carry $221.4B in 3m net flows. Active management has been gaining ground consistently over the quarter. Vanilla passive ETFs bled $8.1B last week despite leading 3m flows at $390.2B. Growth strategies lost $1.5B for the week. That mirrors the tech sector sell-off. Value strategies gained $1.1B — a continuation of a quiet 3m rotation where value has been clawing back ground.
The overall tone remains risk-on. Equities and fixed income both attracted capital. The key shift is rotation away from US tech and China into Japan, cyclicals, and active 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.
