Japan Tops the Week; Tech Bleeds $5.7B

Japan is the dominant story this week. ETF investors poured a net $14.9B into Japanese-focused funds in just seven days. That dwarfs every other geography. Flow imbalance hit 82.8 — well into strong buying territory. Over three months, Japan has also attracted $146B, making the bull case consistent and not just a one-week spike.

The biggest shock is China's sharp reversal. Over three months, China drew a net $18.2B — solidly positive. This past week alone saw a $9B outflow. Flow imbalance collapsed to 22.6. That is a hard trend break. Investors who rode the China recovery trade are now pulling back fast.

Geography Flows

Beyond Japan, the picture is broadly constructive for international exposure. Developed Markets Ex-U.S. pulled in $2.4B this week, with an 84% flow imbalance — near maximum buying pressure. Global Ex-U.S. funds posted an imbalance of 97.9 — almost pure inflows, no selling pressure at all.

U.S.-focused funds attracted a net $2.9B this week, but the gross flows tell a messier story — $77.6B in, $74.7B out. That near-perfect offset signals churn rather than conviction. Over three months, the U.S. leads all geographies with $344.6B in net inflows. The short-term rhythm has slowed considerably.

South Korea flipped negative this week at -$1.4B, despite strong 3-month inflows of $39.8B. Taiwan also saw mild outflows of -$406M this week after a strong quarter.

Sector Rotation

Technology is the week's biggest loser by a wide margin. Information Technology ETFs bled $5.7B in net outflows over seven days. Flow imbalance dropped to 34.6 — clear selling pressure. The contrast with the 3-month picture is stark: Tech pulled in $73.3B over the quarter. That is the largest sector inflow of any group. Sellers are hitting a sector that ran very hard.

Money rotated into Industrials ($949M net), Materials ($931M net), and Health Care ($755M net) this week. Real Estate also attracted $634M — its best recent showing. Over three months, these sectors were far more modest, suggesting a genuine rotation away from mega-cap tech is underway this week.

Energy reversed too. It lost $818M this week but bled $7.4B over three months — one of the weakest sectors in both timeframes.

Asset Class and Strategy

Equity and Fixed Income are running together. Equities took in $19B net this week. Fixed Income added $17.3B — both with healthy flow imbalances above 73. Over three months, equities dominate with $772.7B, but bonds are no slouch at $245.9B. Commodities flipped from -$30B over three months to +$2.7B this week — a possible early reversal signal.

Active strategies are a key theme. Active ETFs drew $6.2B this week and $221.4B over three months — the clearest structural shift in the data. Growth strategies bled $468M this week after pulling in $10.2B over the quarter. Dividend strategies stayed consistently strong in both windows.

Overall tone: risk-on but rotating — investors are selling what worked (tech, China, growth) and buying what lagged (Japan, Materials, Real Estate, bonds).