Active Funds and Bonds Win as US Bleeds Cash

Fixed Income led all asset classes last week. It pulled in $12.4B net — the biggest haul of any category. That stands in contrast to the 3-month picture, where equities dominated with $694B in net inflows. The short-term data tells a different story from the trend.

Geography Flows

The US saw a $6.4B net outflow last week. Flow imbalance sits at just 46.6 — selling pressure is visible. Over three months, however, the US absorbed $287B net. Investors are rotating in the short term, not abandoning.

Japan was the standout buyer this week. It pulled in $4.1B net, with a flow imbalance of 73. Over 3 months, Japan has collected $102.8B — a sustained and deepening inflow trend.

Hong Kong surged to $3.5B net this week with an imbalance of 82.4. That contrasts with its modest $1.2B over 3 months. This week's move looks sharp and sudden.

China flipped negative. It bled $3.1B this week after absorbing $34.9B over 3 months. That reversal is the most notable geographic shift of the week.

South Korea also reversed. It lost $1.4B this week but gained $40.7B over 3 months. Taiwan dropped $905M this week after a $20.5B 3-month gain. Asian EM flows are clearly under pressure right now.

Sector Rotation

Technology posted the biggest sector outflow this week. It lost $3.1B net, with a flow imbalance of just 37.4 — firmly in selling territory. Over 3 months, Tech led all sectors with $45.6B in net inflows. That reversal is sharp.

Energy flipped to positive. It gained $715M this week. Over 3 months, Energy was the only major sector in net outflow at -$4.2B. This week's buying could mark an early rotation signal.

Industrials and Materials both shed money this week — down $777M and $866M respectively. Over 3 months, both were in positive territory. The recent pullback looks broad-based across cyclicals.

Health Care collected $280M this week and $6.9B over 3 months. It is holding up well. Real Estate and Utilities also saw modest but positive weekly flows.

Asset Class and Strategy

Commodities pulled in $4.6B this week, with an imbalance of 76.7. Over 3 months the commodity flow was just $5.8B total — meaning this week alone represents nearly 80% of the quarter's gain. That is a big single-week surge.

Active management is winning. Active ETFs gathered $6.1B this week at a 69.1 imbalance — the strongest buying pressure of any strategy. Over 3 months, active funds collected $202B. The shift from passive to active is a clear and sustained trend.

Vanilla passive ETFs lost $7.3B this week. Over 3 months they are up $319B, but weekly momentum is against them.

Dividend strategies added $1.1B this week and $13.1B over 3 months. Demand for income is steady and consistent.

The overall tone this week is cautious. Bonds, commodities, and active management are gaining. US equities, tech, and passive index funds are giving ground. Risk appetite has cooled from the 3-month trend.