Bonds Lead as Tech Sells Off

Fixed income claimed the top spot for weekly ETF inflows, pulling in $14.2B net versus just $7.3B into equities. That gap marks a notable shift. Over three months, equities dominated with $702.9B in net inflows. Bonds trailed with $227.4B. The week's reversal suggests caution is creeping back into institutional positioning.

Commodities added $4.4B last week. That is the strongest weekly reading relative to size across all asset classes. Over three months, commodity flows total $6.7B — so the pace is accelerating.

Geography Flows

Japan was the standout destination last week. It pulled in $3.8B net, with a flow imbalance of 70.8 — indicating solid buying pressure. Hong Kong followed with $3.1B, imbalance at 77.4.

The U.S. bled $5.1B over the week. That is the worst geographic outflow by a wide margin. Over three months, however, the U.S. still leads with $293.7B in cumulative net inflows. The weekly number looks like a pause, not a trend break.

China tells a sharper story. It drew $33.5B over three months — a clear winner. But last week it lost $1.5B. South Korea flipped the other way: a $41B three-month inflow leader, it also shed $1.2B last week. Both Asian markets appear to be digesting recent gains.

Developed Markets ex-U.S. attracted $1.0B last week, with a flow imbalance of 92.0. That is near-maximum buying pressure. Institutions are clearly rotating into international developed exposure.

Sector Rotation

Technology suffered the biggest weekly sector outflow. It lost $3.0B net, with a flow imbalance of just 37.0 — firmly in selling territory. Over three months, Tech pulled in $45.2B. That three-month lead is now under pressure from this week's reversal.

Energy and Health Care each gained roughly $670M last week. Both showed balanced buying pressure above 62. Over three months, Energy is a different story — it posted a $4.3B net outflow. Energy's weekly recovery looks tactical, not structural.

Industrials and Materials both saw outflows last week, around $600M and $550M respectively. Over three months both were positive, suggesting last week was a rotation pause.

Asset Class and Strategy

Active funds were the top strategy by weekly inflow, drawing $5.4B with a 70.3 imbalance. That is strong directional conviction from allocators choosing managed exposure over passive. Over three months, Active pulled in $202.4B — the second-largest strategy total behind vanilla indexing's $326.6B.

Dividend strategies added $953M last week. That fits the bond-buying tone. Investors appear to want income from both fixed income and equity sleeves simultaneously.

Exchange-specific funds shed $3.7B last week — the largest strategy outflow. Over three months they were firmly positive at $29.7B, so last week's number represents a sharp reversal worth watching.

Overall, the week's tone leans cautiously risk-off. Bonds and income strategies gained ground. Tech and the U.S. broadly lost flows. Asia ex-China attracted fresh money. Active management is outpacing passive for now.