China ETFs shed nearly $9.8B in a single week. That is the headline number from this week's ETF flow data — and it marks a sharp reversal from the 3-month trend, where China funds had attracted $20.9B.
The U.S. remains the dominant destination for global ETF capital. American-focused funds pulled in a net $13.9B this week. Over three months, that figure swells to $363B. The momentum is consistent and shows no sign of fading.
Japan is the standout international winner. Japanese ETFs drew $6.4B in net inflows this week. The 3-month total sits at $140B, making it the second-largest geography by flow volume behind the U.S. The flow imbalance reading of 63.5 confirms sustained buying pressure.
China is the week's biggest reversal story. Three-month flows were solidly positive at $20.9B. This week flipped to a -$9.8B outflow, with a flow imbalance of just 20.9. That signals strong selling pressure. Hong Kong followed a similar pattern. It bled $532M this week and $10.1B over three months.
Developed Markets ex-U.S. continues to attract steady rotation. That category pulled in $1.1B this week, with a flow imbalance of 84.5 — one of the highest readings in the geography table.
Technology is the week's biggest loser by a wide margin. Information Technology ETFs saw $3.3B in net outflows this week. That contrasts sharply with the 3-month picture, where Tech absorbed $73.9B — by far the largest sectoral inflow over that period.
Materials took the top spot this week with $2.1B in net inflows. Its flow imbalance hit 86.6. Industrials added $901M. Both sectors show a clear rotation away from high-valuation tech into more cyclical plays.
Energy continued to struggle. It shed $476M this week and $6.9B over three months. That makes it the worst-performing sector over both timeframes. Consumer Staples also saw mild outflows this week, consistent with a risk-on environment where defensives underperform.
Health Care, Real Estate, and Consumer Discretionary all logged modest positive flows this week.
Every major asset class saw inflows this week. Equity funds led with $24.1B. Fixed Income added $16.9B. Commodities drew $4.5B — a notable reversal from the 3-month figure, where commodities saw $29B in outflows. That week-over-week turnaround is worth watching.
Active management continues to take share from passive. Active ETFs attracted $7.4B this week. Vanilla passive strategies shed $5.6B despite being net positive over three months at $404.8B. ESG funds pulled in $2.9B this week, a meaningful pickup relative to the 3-month pace.
Growth strategies bled $368M this week. Over three months they attracted $10.4B. That 1-week reversal adds to the rotation signal seen in the tech sector data.
The overall tone is cautiously risk-on. Money is moving into equities, commodities, and active strategies. The rotation out of tech and China into Japan, Materials, and Industrials is the clearest short-term trend shift visible in this week's data.
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.
