Money Pours Into Bonds as US Stocks Bleed

Active strategies and fixed income are the week's standout stories. US equity ETFs shed $4.7B in the past week. At the same time, bonds pulled in $9.1B — nearly matching equity inflows of $10.3B despite a fraction of the asset base.

That bond number matters. Over three months, fixed income collected $221B versus equities at $678B. The pace of bond buying is accelerating relative to the quarter's trend. Investors are clearly hedging.

Geography Flows — Ex-US Wins

Global ex-US ETFs attracted the strongest buying pressure this week. The flow imbalance score for Developed Markets Ex-North America hit 96.4 — near-maximum buying pressure. Emerging Markets scored 93.5. Both signals point to a deliberate rotation away from domestic US exposure.

Japan drew $2.2B in net inflows over the week. Over three months it has been the second-largest geography by net flow at $99.7B, behind only the US at $269.9B. That trend is holding.

The US itself flipped to a $4.7B net outflow for the week. Over the prior three months it posted a $269.9B net inflow. That is a sharp short-term reversal worth watching.

South Korea swung to $1.5B in outflows this week, flow imbalance at just 30.8. Over the three-month period it actually posted $37.2B in net inflows. The one-week reversal is a clear divergence signal.

Sector Rotation — Tech Holds, Utilities Crack

Information Technology led all sectors with $1.7B in net inflows this week. That matches the three-month picture, where Tech accumulated $40.8B — by far the largest sector haul.

Utilities took the hardest hit this week, bleeding $566M with a flow imbalance of just 11.4. That is strong selling pressure. Over three months Utilities was roughly flat at $712M. The weekly drop looks like a fresh move out of defensives.

Industrials and Consumer Discretionary also posted outflows this week — $287M and $460M respectively. Both were positive over the three-month window, suggesting recent momentum has stalled.

Real Estate quietly gathered $225M this week and $4.6B over three months, showing consistent demand.

Asset Class & Strategy — Active Leads, Price-Weight Sold

Alternatives stood out on strategy flows. Their flow imbalance hit 85.8 this week — strong buying. Over three months they attracted $9.1B. The bid for non-correlated return is real and building.

Active strategies topped all strategy categories with $5.3B in weekly net inflows, flow imbalance at 73.9. Three-month active inflows total $191B. The shift from passive to active is sustained, not a flash.

Dividends registered an 88.5 flow imbalance this week. That is the highest of any strategy. Investors are reaching for income alongside active management.

Price-weighted strategies saw $4.2B in net outflows this week. The same category bled $4.1B over three months too. It is a consistent loser.

The overall tone is cautious rotation: out of the US and cyclicals, into bonds, income, active management, and international developed markets.