The biggest story in ETF flows this week is a sharp reversal in tech. Information Technology bled $3.7B in the past seven days. Over three months, the sector pulled in $52.9B — the largest sector inflow of the quarter. That flip is the clearest rotation signal in the data right now.
Japan led all geographic regions with $7.9B in net inflows this week. Flow imbalance hit 69.6, signalling clear buying pressure. The trend holds over three months too, with Japan attracting $60.8B — the second-largest geographic haul globally.
US-focused ETFs posted a $8.8B net outflow this week. That is a notable drag, though gross inflows of $64.2B show underlying activity remains large. Over three months, the US remains dominant with $328.2B in net inflows, so the weekly dip looks like a short-term pause rather than a structural exit.
Emerging Markets attracted $1.8B this week, with a flow imbalance of 89. That is a strong buying signal. Over three months, EM has pulled in $20.8B. Taiwan reversed course — $24.2B in over three months but a $373M outflow this week, suggesting some profit-taking. South Korea also flipped: a $41.1B three-month inflow turned into a $465M weekly outflow.
Developed Europe added $1.3B in the week. China saw a small $421M outflow this week after a strong $36.1B three-month run.
Technology's reversal dominates the sector picture. Financials also shed $1.7B this week, after pulling in $3.2B over three months. Energy dropped $474M on the week and $5.7B over three months — the weakest sector over both timeframes.
Real Estate gained $264M this week and $4.9B over three months. That is a consistent inflow trend. Health Care added $259M this week and $7B over three months. Utilities quietly added $200M this week. Defensive and rate-sensitive sectors are clearly gaining ground as tech money exits.
Every asset class posted positive net flows this week. Equities led with $15.5B. Fixed Income added $9.5B — up from a balanced position over three months where it attracted $230B. Commodities pulled in $4.9B this week, a notable reversal from a $8.7B three-month net outflow. Currency ETFs attracted $2.5B this week, well above their $1.5B three-month total.
On strategy, Active funds were the standout with $6.3B inflows and a flow imbalance of 69.3. Over three months, Active has absorbed $206.6B, second only to Vanilla passive. Fundamental and Equal-weight strategies each added over $2.4B this week. Value pulled in $1.1B this week, while its three-month total is nearly flat — suggesting fresh interest rather than a sustained trend.
The overall tone is cautiously risk-on. Investors are rotating out of crowded tech and high-beta names into bonds, commodities, active funds, and defensive equity sectors.
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.
