Japan topped all geographies this week. ETFs focused on Japan pulled in $4.2B net over seven days. Hong Kong added $3.5B. Both markets showed strong buying pressure, with flow imbalance scores of 74 and 82 respectively.
The contrast with China is stark. China ETFs shed $3.1B in the past week alone. That is a sharp reversal from the three-month picture, where China was a net recipient of $34.9B. Money that flowed in steadily over the quarter is now heading for the exit.
South Korea and Taiwan also bled capital this week. Korea lost $1.4B, Taiwan shed $903M. Over three months, both markets attracted strong inflows — Korea $40.8B, Taiwan $20.5B. The week-versus-quarter gap signals a clear pullback from Asian tech-heavy markets.
The US registered a small net outflow of $1.7B this week despite $38.4B in gross inflows. That suggests churning rather than outright selling. Emerging markets broadly held up, attracting $1.5B with a flow imbalance of 93 — nearly all buying, minimal selling pressure.
Technology was the week's biggest loser. IT sector ETFs shed $2.4B net. Outflows of $6.6B swamped inflows of $4.2B. Over three months, tech remains the top-gaining sector at $46.3B. The weekly reversal is significant — it suggests short-term profit-taking after a strong run.
Energy flipped the other way. It pulled in $831M this week. Over three months, energy was a net loser at -$4.1B. That is a genuine trend shift — money that was leaving energy funds is now coming back.
Health Care and Utilities both attracted modest net inflows this week. Materials posted a $964M outflow, and Industrials lost $170M over the seven-day period.
Fixed Income edged ahead of equities this week. Bonds drew $9.9B net versus $9.2B for equities. Over three months, equities dominated with $698.7B versus bonds at $221.5B. The weekly flip toward fixed income is a defensive signal.
Commodities continued to attract capital. $4.3B flowed into commodity ETFs this week, with a flow imbalance of 76 — solidly bullish buying pressure.
Active management had its best relative week. Active ETFs pulled in $5.2B against a $5.0B net outflow for vanilla passive funds. Over three months, vanilla still leads with $321.6B. But investors appear to be paying up for active selection right now. Dividend strategies attracted $1.0B this week, extending a consistent three-month trend of $13B in cumulative inflows.
Overall, the week's flow data leans defensive. Bonds beat stocks, tech is losing ground, energy is finding buyers, and Japan is the geography of choice. The three-month risk-on trade is showing early signs of fatigue.
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.
