The dominant story this week is a sharp divergence in tech. Information Technology was the single largest sector outflow over the past week, shedding $2.5B in net flows. That is a stark reversal from the past three months, when the same sector pulled in $60.8B — the biggest sectoral gain of any category tracked.
The US remains the clear top destination. American-focused ETFs pulled in $22.8B net over the past week, with a flow imbalance of 63.1 — comfortably in buying-pressure territory. Over three months, that figure reaches $371.7B, dwarfing every other region.
Japan tells a different story. It was a strong 3m winner with $69.7B in net inflows. This week it flipped sharply, recording a $6.2B net outflow with a flow imbalance of just 35.8. That kind of reversal signals profit-taking after a sustained run.
China also saw $4.1B exit in the past week, though over three months it remains in positive territory at $20.9B. Hong Kong bled in both periods — down $683M this week and $12.8B over three months.
The bright spots outside the US include Global Ex-US funds. They logged a flow imbalance of 90.1 this week — near the maximum buying-pressure reading — on $1.9B of net inflows. Emerging Markets added $1.5B this week. Developed Europe contributed $1.1B.
The weekly sector picture shows clear defensiveness creeping in. Healthcare gained $222M and Consumer Staples added $113M. Real Estate saw $86M of net buying. Materials picked up $240M.
Meanwhile the cyclicals are losing ground. Financials shed $818M this week, and Industrials dropped $177M. Over three months, both sectors were net positive — Industrials at $4.8B and Financials at $4B. The weekly shift suggests rotation out of rate-sensitive and cyclical plays.
Energy took a $198M weekly hit on top of a 3m loss of $5.6B. It is the only sector showing sustained outflows across both periods.
Fixed income is the clearest conviction trade right now. Bond ETFs took in $15.2B net this week, with a flow imbalance of 75.7. Over three months, $243.5B has moved into fixed income. The buying pressure is consistent and accelerating.
Equities still dominate in absolute terms — $21.3B net this week and $724B over three months. But commodities flipped. They absorbed $1.3B this week, a modest positive. Over three months they shed $31.3B, one of the larger asset-class outflows in that period.
On strategy, active management is winning flows. Active ETFs collected $5.9B this week against $215B over three months — the strongest 3m reading after vanilla. Value strategies stood out with an 88.0 flow imbalance this week, the highest of any strategy tracked. Price-weighted funds reversed sharply, losing $3.7B this week despite a positive 3m of $9.4B.
The overall tone is cautious rotation. Money continues to flow into US equities and bonds. But last week's sharp tech reversal and Japan outflows hint that some of 2025's strongest trades are being unwound.
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.
