Japan pulled in $8.0B last week. That was the single biggest geographic win outside the US. Investors moved fast, with a flow imbalance of 69.8 — firmly in buying territory. The shift is notable. Over three months Japan attracted $74.4B, but last week's pace was sharper relative to the trend. Global and Developed Markets Ex-US also logged positive weekly inflows of $5.0B and $1.8B respectively, as money continued rotating out of domestic US exposure.
US-focused ETFs bled $12.1B in the week — the worst of any geography — even as the 3-month picture shows a $342B net inflow. The weekly reversal is the story. Flow imbalance for US funds dropped to 44.8, signalling that selling pressure overtook buying for the first time in the recent trend.
Japan, Developed Europe, and Emerging Markets all attracted inflows last week. Emerging Markets pulled in $1.7B with a strong imbalance score of 89.1. Developed Markets Ex-US recorded $1.8B. South Korea flipped from a $40.2B three-month winner to a $458M net outflow on the week. China also reversed — from $37.0B over three months to a $393M weekly outflow. Taiwan shed $272M. These Asian markets are showing early signs of short-term fatigue after a strong quarter.
Tech took the biggest hit. Information Technology ETFs lost $4.2B in the week. That reverses a dominant $53.2B three-month inflow. Financials dropped $1.1B and Communication Services lost $427M. Energy fell $425M. The selling was broad across cyclical growth sectors.
Defensive sectors held up. Utilities gained $216M with an imbalance score of 81.6. Real Estate took in $293M. Health Care added $97M. The weekly sector rotation is a clear shift from growth to defence.
All asset classes attracted net inflows for the week, but the mix shifted. Commodities collected $5.3B — a sharp reversal from a $9.3B three-month net outflow. That is the clearest trend break in the data. Fixed Income added $6.2B. Equities led at $9.4B, but the imbalance score of 52.5 is barely above neutral.
On strategy, Active funds led with $5.2B of inflows and a high imbalance score of 69.8. Vanilla passive strategies bled $3.0B. Price-weighted strategies — dominated by Nikkei-linked funds — lost $2.9B. Equal-weight strategies gained $2.2B. Fundamental strategies added $1.9B. Dividend and Value strategies both posted positive weekly flows, continuing their three-month trend.
The overall tone is cautious. Investors are trimming US tech and cyclical exposure, rotating toward non-US markets, defensives, and real assets — with commodities staging a notable comeback after a weak quarter.
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.
