Japan Leads a Broad Risk-On Surge

Japan ETFs pulled in a net $14.0B this week. That was the biggest single geography inflow by a wide margin. It also confirms a trend. Over the past three months, Japan has attracted $144.1B in net flows — the second-largest haul behind only the U.S.

China tells the opposite story. It shed $6.6B last week alone. That reverses a $18.5B net gain built over the prior three months. Selling pressure is sharp, with a flow imbalance of just 33.8 — well into outflow territory.

Geography Flows

The U.S. pulled in a net $6.3B last week. That looks modest against its $346.2B three-month total, but the pace has slowed noticeably. Emerging markets added $2.4B in the week, with a strong imbalance score of 82.5. Developed Europe attracted $1.1B. Global Ex-U.S. funds posted a flow imbalance of 94.0, meaning almost all money moving was buying. Hong Kong remained under pressure, losing $885M on the week — part of a $9.8B three-month outflow.

Sector Rotation

Technology is the clearest loser right now. IT sector ETFs bled $5.8B last week. That is a sharp turn from a $73.6B net gain over the prior three months — the biggest sector haul of all. Money appears to be rotating out of recent winners.

Industrials are the standout beneficiary this week. They collected $1.3B in net inflows. Consumer Discretionary and Health Care each added roughly $820–$890M. Energy continued to struggle, losing $321M on the week and $7.4B over three months. It is the only sector with sustained net outflows across both timeframes.

Asset Class & Strategy

Equities absorbed $28.6B in net flows last week. Fixed Income was close behind at $18.9B. That is a meaningful shift — bonds have been building a $245.9B three-month total with consistent buying pressure (flow imbalance of 70.1). Commodities attracted $2.5B in the week, a reversal from a $30.2B three-month net outflow. Currency ETFs are also flipping — a $696M inflow last week against a $7.4B three-month deficit.

On strategy, active funds took in $7.2B last week. That tracks with a $221.4B three-month total, the strongest active-versus-passive trend in this data set. Growth ETFs bled $1.5B on the week, reversing a $10.3B three-month inflow — another rotation signal. Dividend strategies also turned negative this week, down $1.1B. Value funds held a slight positive bias.

The overall tone is cautiously risk-on. Equity and bond flows are both positive. Japan and emerging markets are attracting capital. But the sudden reversal in Tech and Growth — last quarter's strongest performers — points to profit-taking and a broader rotation into defensive and international exposure.