Active Funds Win as Tech Flows Reverse

Fixed Income grabbed the biggest weekly inflow. $12.4B flowed into bond ETFs this week. That is the largest net gain of any asset class. Equities also held positive, adding $4.8B. But the tone is shifting.

The standout divergence sits in commodities. Over three months, commodity ETFs drew just $5.8B net. This week alone they pulled in $4.6B. That is a sharp acceleration. It signals fresh demand for hard assets — likely tied to macro hedging or dollar weakness.

Geography Flows — Japan Leads, US Bleeds

Japan attracted $4.1B in net inflows this week. Flow imbalance hit 73, firmly in buying-pressure territory. Hong Kong added $3.5B with a striking imbalance score of 82. Both markets have now drawn consistent interest over three months too — Japan up $102.8B and Hong Kong $1.2B on that horizon.

The US is the week's biggest loser. Net outflows reached $6.4B, despite gross inflows of $44.3B. The scale of selling — $50.7B out — overwhelmed buyers. Over three months, the US remains the top geography by total net inflow ($286.9B), so this week looks like a short-term rotation rather than a structural exit.

South Korea flipped sharply. It was a strong three-month performer (+$40.7B net). This week it shed $1.4B. Taiwan also reversed, down $904M week-on-week after a solid quarter. China continued bleeding — $3.1B out this week, though it posted $34.9B net inflows over three months.

Sector Rotation — Tech Sold Hard, Energy Bought

Information Technology suffered the heaviest sector outflows this week. $3.1B left IT ETFs. Flow imbalance collapsed to 37. That is a stark reversal: over three months, Tech was the top sector with $45.6B net inflows.

Energy is the week's sector winner. $715M net inflows. Imbalance score of 63. Over three months, Energy was actually negative (-$4.2B). The one-week reversal is significant. It suggests fresh positioning rather than a continuation of trend.

Health Care, Real Estate, and Utilities all posted modest weekly gains. Materials and Industrials each shed roughly $800M. Consumer Discretionary lost $189M.

Asset Class & Strategy — Active Surges Past Passive

Active ETFs pulled in $6.1B this week. Flow imbalance was 69. Passive Vanilla strategies lost $7.3B net. This is a notable shift. Over three months, both grew strongly — Vanilla by $319.3B, Active by $202.3B — but the weekly gap has flipped decisively in Active's favour.

Dividend strategies attracted $1.1B this week with an imbalance of 83. Fundamental strategies added $1.6B. Both suggest investors are favouring quality and income over pure index exposure.

Fixed Income's three-month net was $224B. Weekly it leads all asset classes at $12.4B. That consistency points to sustained demand for bonds, not just a one-week blip.

Overall, the week's tone is cautious rotation — out of US equities and Tech, into bonds, commodities, and active income strategies.