Tech Sells Off, Japan and Bonds Lead

The biggest story this week is a sharp reversal in tech. Information Technology ETFs bled $5.7B in net outflows over the past week. Over the past three months, the same sector pulled in $73.3B. That is a dramatic turn — from the top destination for capital to the biggest drain in days.

Geography Flows

Japan is the standout winner. It attracted $11.6B in net inflows this week alone, with a flow imbalance of 69.8 — well above the 65 threshold that signals strong buying pressure. Over three months, Japan has drawn $146.2B, second only to the U.S. Money is rotating into Japanese equities with conviction.

The U.S. remains the largest market by volume. It posted $16.8B net inflows this week and $344.6B over three months. But its flow imbalance of just 54.8 suggests a roughly balanced market, not a one-way trade.

China is the sharpest reversal. It pulled in $18.2B over three months. This week, it haemorrhaged $10.8B in net outflows, with a flow imbalance of just 22.4 — deep selling territory. Hong Kong mirrors the move, down $910M this week vs. negative $9.8B over three months.

South Korea flipped the other way. It posted $39.8B over three months but slipped to a $654M outflow this week. Taiwan is similar — strong over three months ($25.3B), but a $468M net drain this week.

Sector Rotation

Away from tech, money is flowing into cyclicals. Industrials gained $949M this week. Materials added $931M. Real Estate took in $634M. Consumer Discretionary followed with $602M.

Energy is the other sector bleeding red. It lost $818M this week. Over three months it shed $7.4B — making it the only major sector with consistent outflows over both periods.

Health Care is holding up. It posted $755M inflows this week and $7.2B over three months.

Asset Class and Strategy

Bonds are surging. Fixed Income ETFs pulled in $17.3B this week, close to matching Equity's $19B. That near-parity between stocks and bonds is notable. Over three months, Fixed Income attracted $245.9B — still well behind Equity's $772.7B, but with a flow imbalance of 73.1 this week versus Equity's 54.1.

Commodities flipped sharply. They drew $2.7B inflows this week. Over three months they saw $30.1B in net outflows. This could be early rotation into gold or energy hedges.

On strategy, Active ETFs are the standout. They pulled $6.2B this week and $221.4B over three months, with an imbalance of 76.3 — strong sustained buying. Passive Vanilla flows went negative this week at -$14.7B, despite leading over three months.

Dividend strategies added $1.8B this week. Growth strategies dropped $468M — reinforcing the rotation away from high-multiple, long-duration assets.

Overall, the tone is cautiously risk-off: bonds rising, tech falling, active management gaining ground over passive.